What Happened?
Shares of solar power systems company SolarEdge (NASDAQ: SEDG) fell 4.8% in the afternoon session after Jefferies raised its price target for the company but kept its 'Underperform' rating, a signal of continued caution about the stock's future.
The investment firm lifted its target to $24 from $20, but this new price still represented a significant downside from the stock's last closing price. Jefferies voiced concerns that the stock's strong rally had made it overvalued and noted potential risks in the company's ability to carry out its plans. The firm also projected that SolarEdge's sales volumes would grow more slowly than the market expected and did not see the company generating core profits through 2027. Adding to the cautious outlook, the wider view from analysts was also negative, with a consensus 'Sell' rating and an average price target that pointed to a potential drop in the stock's value.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy SolarEdge? Access our full analysis report here.
What Is The Market Telling Us
SolarEdge’s shares are extremely volatile and have had 93 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 11 days ago when the stock gained 4.6% on the news that the company unveiled Nexis, a new all-in-one residential solar and modular battery system. The system featured an integrated inverter and a stackable, modular battery designed for flexibility and easy installation. Its “simple-click” design meant additional battery modules could be added without complex electrical work, allowing homeowners to scale their energy storage up to 19.6 kWh. This new product supported various uses, including whole-home backup and self-consumption. The announcement built on positive momentum from the previous week, when SolarEdge began its first international shipments from its U.S. manufacturing facility and J.P. Morgan analysts raised their price target on the stock.
SolarEdge is up 142% since the beginning of the year, and at $35.87 per share, it is trading close to its 52-week high of $39.45 from September 2025. Investors who bought $1,000 worth of SolarEdge’s shares 5 years ago would now be looking at an investment worth $131.59.
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