Why This SolarEdge Analyst Is Cutting Estimates Ahead Of Q3 Earnings
Portfolio Pulse from Priya Nigam
JPMorgan analyst Mark Strouse has lowered estimates for SolarEdge Technologies (SEDG) ahead of its Q3 earnings, citing weak demand in Europe as seen in Enphase Energy's (ENPH) results. Strouse maintained an Overweight rating but reduced the price target from $35 to $29. SolarEdge's significant European exposure and potential cash burn raise liquidity concerns.
October 23, 2024 | 3:56 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Enphase Energy's Q3 results showed a 34% decline in European sales, indicating weak demand. This has indirectly impacted SolarEdge's estimates due to similar market exposure.
Enphase's results highlight weak demand in Europe, which affects SolarEdge due to its significant sales in the region. While Enphase is not a direct competitor, its performance provides insight into market conditions that impact SolarEdge.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 50
NEGATIVE IMPACT
JPMorgan's Mark Strouse lowered SolarEdge's price target from $35 to $29 due to weak European demand impacting sales. The company faces potential cash burn and liquidity concerns, affecting investor sentiment.
The analyst's decision to lower the price target and estimates is based on weak demand in Europe, which is a significant market for SolarEdge. This, combined with potential cash burn, raises concerns about the company's financial health, likely leading to a negative short-term impact on the stock price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100