Oppenheimer Downgrades SolarEdge Technologies (SEDG) to Perform, 'Channel Correction Worsens'

Oppenheimer analyst Colin Rusch downgraded SolarEdge Technologies (NASDAQ: SEDG) from Outperform to Perform.

The analyst comments "

With Thursday's pre-announcement, SEDG signaled much deeper challenges than previously suggested by management commentary. To us, the magnitude of this inventory rebalance appears to require at least two quarters to work through, as working capital challenges for distributors/installer plus module price dislocations and somewhat skittish consumers are driving a harsh correction in the distributed solar space. While we continue to see distributed power assets as crucial for a zero emissions economy and are encouraged to see SEDG maintaining profitability through this cycle, we step to the sidelines looking for industry fundamentals to stabilize. We look at early spring as the first opportunity for that sort of stabilization and believe investors will have multiple opportunities to re-engage on the name before then."

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 $113.98 yesterday.

You May Also Be Interested In

• Wells Fargo Downgrades Roku Inc. (ROKU) to Equal Weight
• Jefferies on Five Below (FIVE): 'Our latest channel checks reinforce our view that FIVE's momentum extends well beyond viral Squish trends'
• SoundThinking (SSTI) PT Lowered to $8 at Cantor Fitzgerald