TLDR
- Jefferies upgraded SolarEdge from Underperform to Hold, raising its price target from $30 to $49
- European TTF gas prices have risen ~94% since the latest conflict began, potentially boosting solar demand
- SolarEdge’s European revenue grew from $630M in 2020 to $1.9B in 2023 during the last energy crisis
- Jefferies raised 2027 and 2028 revenue forecasts by 17% and 19% respectively
- SEDG stock is up ~60% year-to-date and trades near its 52-week high of $48.60
SolarEdge (SEDG) has climbed roughly 4% in Friday premarket trading after Jefferies upgraded the stock and raised its price target.
SolarEdge Technologies, Inc., SEDG
The upgrade moves SEDG from Underperform to Hold. Jefferies lifted its price target from $30 to $49 — a roughly 7.3% upside from Thursday’s close.
The core of Jefferies’ argument is energy price volatility. European gas prices, tracked by the TTF benchmark, have surged about 94% since the latest Middle East conflict began. That kind of price shock tends to push households and businesses toward solar and storage as a way to lock in more stable energy costs.
It’s a pattern the market has seen before. When Russian gas supply disruptions sent European energy prices soaring in 2022, solar adoption followed. SolarEdge‘s European revenue jumped from $630 million in 2020 to $1.9 billion in 2023.
Jefferies doesn’t expect an exact repeat of that run. Renewable energy penetration is already higher across Europe, and power prices have stayed relatively stable even as gas costs climbed. Any demand rebound is expected to be more measured.
Still, the broker sees SolarEdge in a better position than it was. Inventory corrections that weighed on the company’s results have eased, and SEDG has gained ground in commercial and industrial markets while holding its position in residential.
Revised Revenue Forecasts
Jefferies raised its revenue estimates for 2027 by 17% and for 2028 by 19%. The 2026 forecast was left largely unchanged, with the brokerage citing customer caution given current macro uncertainty.
Despite the upgrade, Jefferies stopped short of a Buy. Valuation is the sticking point. SEDG has rallied about 60% so far in 2026 and now trades near 18x estimated 2027 EV/EBITDA — slightly above its peer group. Jefferies said the market appears to have already priced in expectations of stronger demand and market share gains.
The broader analyst community remains cautious. Of the 25 analysts covering SEDG, one rates it a Buy, 18 have a Hold, and six have a Sell. The MarketBeat consensus sits at “Reduce” with an average price target of $29.09 — well below where the stock is currently trading.
Recent Earnings Beat
SolarEdge’s most recent quarterly report came in ahead of estimates. The company posted EPS of -$0.14, beating the consensus of -$0.19. Revenue came in at $333.8 million versus an expected $330.3 million, up 70.9% year-over-year.
Net margin remains negative at -34.23%, and analysts project full-year EPS of -$4.54 for the current year.
Institutional ownership sits at around 95%. Several large holders added to their positions in recent quarters, including UBS Group, which grew its stake by 234.8% in Q3.
SEDG opened at $45.66 on Friday, just below its 52-week high of $48.60.
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