SolarEdge Technologies, Inc. (NASDAQ: SEDG) shares plummeted heavily on Friday after reducing the Q3 revenue outlook to $720 million-$730 million vs. $880 million-$920 million earlier and below the consensus of $909.02 million.
The company's earnings call is scheduled for Wednesday, November 1, 2023.
Goldman Sachs analyst Brian Lee downgraded to Neutral from Buy, lowering the price target to $131 from $254.
Lee writes that after a second straight quarter of revenue (and now) margin disappointment, the path for shares to recover will be challenged until SEDG can re-establish top-line growth and gain some traction in improving its margin profile.
On the former, the demand environment in Europe is now a significant question mark heading into 2024, and the issue is much larger than simply seasonality at this point as inventory, weaker demand, and potential market share issues are likely to be focus items for the next few quarters.
On the latter, the margin issue is now materializing once again, and the analyst notes that margins have historically been aFull story available on Benzinga.com