Needham & Company Cuts Price Target on SolarEdge Technologies (SEDG) Following 1Q and Guidance

November 10, 2016 8:20 AM EST
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Price: $13.45 +1.89%

Rating Summary:
    8 Buy, 4 Hold, 3 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Needham & Company maintained a Buy rating on SolarEdge Technologies (NASDAQ: SEDG), and cut the price target to $22.00 (from $25.00), following the company's 1Q earnings report. Revenues of $128.5MM missed the consensus of $132.5MM due to the market condition. NG EPS of $0.46 beat the Street's $0.41 estimate. Mid-point of revenue guidance of $110-$120MM implies ~10% QoQ, which is substantially below the Street's $137.8MM. 2Q NG EPS at $0.31 is below the Street's $0.45.

Analyst Edwin Mok commented, "SEDG reported strong F1Q17 (Sep) earnings on a revenue miss. As we had warned coming out of SPI, further slowdown in U.S. residential market is impacting the outlook, resulting in the sequentially lower F2Q17 (Dec) guidance. While expectations were low, uncertainty around the market environment is likely limiting SEDG stock in the near-term. However, we believe growth in commercial and international will offset the challenging U.S. residential market in CY2017, and SEDG has multiple cost reduction levers to combat the increased pricing pressure. Given the deep sell-off of shares, we believe SEDG's solid profitability offers favorable risk/reward for investors who can stomach the wide swing of the solar sector. Maintain our Buy but lower our PT to $22 (was $25)."

For an analyst ratings summary and ratings history on SolarEdge Technologies click here. For more ratings news on SolarEdge Technologies click here.

Shares of SolarEdge Technologies closed at $14.00 yesterday.

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