What Happened?
Shares of solar power systems company SolarEdge (NASDAQ: SEDG) jumped 9.1% in the afternoon session after its positive momentum continued as TD Cowen upgraded the stock to "Buy" from "Hold" and raised its price target, citing progress in the company's turnaround plan.
The analyst firm pointed to the launch of new products, such as Nexis and Single SKU, which were helping the company improve its profit margins and gain market share. TD Cowen also highlighted strong early demand for SolarEdge's new CSS-OD Commercial Storage System in Germany, which received over 150 orders within weeks of its launch. The firm's new price target of $38 per share represented a potential 25% upside from the stock's price at the time of the report, boosting investor confidence.
The shares closed the day at $35.41, up 7.7% from previous close.
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What Is The Market Telling Us
SolarEdge’s shares are extremely volatile and have had 84 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 5.8% on the news that TD Cowen upgraded the stock to Buy from Hold. The firm also increased its price target on the solar technology company to $38 from $34.
The upgrade was based on the view that SolarEdge was executing its turnaround plan with the launch of new products, which were believed to be supporting profit margins and market share gains. For example, the company's new commercial storage system saw strong initial demand in Germany, with over 150 orders shortly after its launch. Other analysts also viewed the company more favorably, as Morgan Stanley upgraded the stock's rating to Equalweight from Underweight, while Jefferies raised its price target.
SolarEdge is up 15% since the beginning of the year, but at $36.06 per share, it is still trading 20.5% below its 52-week high of $45.38 from November 2025. Investors who bought $1,000 worth of SolarEdge’s shares 5 years ago would now be looking at an investment worth $104.13.
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