SolarEdge Technologies (SEDG) Soars on Better-Than-Expected Earnings and Revenue Forecast

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May 06, 2025
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  • SolarEdge Technologies posts a significant quarterly rebound with a 19% stock surge.
  • Impressive revenue growth and optimistic future guidance defy market challenges.
  • Analyst consensus suggests a "Hold" with substantial potential upside according to GuruFocus metrics.

SolarEdge Technologies (SEDG, Financial) recently showcased a remarkable recovery by reporting a narrower-than-anticipated loss in the first quarter. This positive news catapulted the stock nearly 19%, reflecting growing investor confidence. The company achieved a 12% quarter-over-quarter revenue increase, reaching $219.5 million, defying challenges such as tariff impacts.

Future Projections: Revenue and Margins

Looking ahead, SolarEdge forecasts second-quarter sales between $265 million and $285 million, comfortably surpassing analyst expectations. Furthermore, the company anticipates adjusted gross margins in the range of 8% to 12%, underscoring its strategic resilience amidst market volatility.

Wall Street Analysts Forecast

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The financial community exhibits diverse opinions on SolarEdge's future price trajectory. Based on projections from 28 analysts, the average one-year target price for SolarEdge Technologies Inc (SEDG, Financial) is $17.89. This reflects a potential upside of 19.12% from its current level of $15.02, with estimates ranging from a high of $100.00 to a low of $3.90. Detailed data is available on the SolarEdge Technologies Inc (SEDG) Forecast page.

Investment Recommendations

The consensus among 33 brokerage firms is a recommendation of "Hold" for SolarEdge Technologies, with an average rating of 3.4 on a scale where 1 indicates a Strong Buy and 5 denotes a Sell. This suggests a cautious yet optimistic approach to the stock.

GuruFocus’s GF Value Estimation

According to GuruFocus estimations, SolarEdge Technologies Inc (SEDG, Financial) presents a compelling investment case with an estimated GF Value of $54.76 within one year. This projection indicates a substantial potential upside of 264.7% from its current price of $15.015. The GF Value reflects a calculated estimate of the fair trading value, integrating historical trading multiples, business growth patterns, and future performance estimates. For further insights, visit the SolarEdge Technologies Inc (SEDG) Summary page.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.