TAN - SolarEdge drags down solar peers after weak guidance on lower demand

2023-08-02 10:59:21 ET

SolarEdge Technologies ( NASDAQ: SEDG ) -17.8% in Wednesday's trading to its lowest since October after issuing disappointing revenue guidance for Q3 , weighed by elevated levels of inventory among its customers caused by weak demand.

Analysts at Susquehanna cited the inventory buildup and the likelihood of reduced battery shipments next quarter, "as battery shipments have outpaced their inverter supply and needs to catch up."

Guggenheim acknowledged the weak guidance, saying its "more upbeat outlook was wrong, but we still think SEDG is the best way to participate in distributed solar growth."

Both firms maintained their Positive/Buy ratings but cut their respective stock price targets to $305 from $365 and to $290 from $400.

SolarEdge's ( SEDG ) results are dragging down other solar stocks ( NYSEARCA: TAN ), including SunPower ( SPWR ) -7.7% , Shoals Technologies ( SHLS ) -6.9% , Sunrun ( RUN ) -6.1% , Array Technologies ( ARRY ) -5.6% , Enphase Energy ( ENPH ) -5.5% , Maxeon Solar ( MAXN ) -4.7% , Sunnova Energy ( NOVA ) -4.4% , JinkoSolar ( JKS ) -4.3% , Canadian Solar ( CSIQ ) -3.9% , Daqo New Energy ( DQ ) -3.7% , First Solar ( FSLR ) -3.6% .

More on SolarEdge Technologies:

• Financial and valuation comparison to sector peers
• Analysis: SolarEdge Technologies: At A Good Price To Start A Position For The Long Term
• Stock price return: Down 28.5% YTD, down 33% in the past 12 months

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