Goldman Sachs analyst, Brian Lee, reiterated his Sell rating on shares of SolarEdge Technologies (NASDAQ: SEDG) after 1Q18 results beat expectations on revenue, gross margin and EPS metrics. Despite the recent outperformance, the analyst believes SEDG is nearing the end of a robust positive earnings revision cycle and pricing is set to normalize with volume trends likely to slow over the next few quarters.

The analyst stated "While competitive risk to share — and thus EPS power — remain the crux of our negative view, we also see the ability to beat-and-raise becoming more challenged as investor expectations appear to be better calibrated with SEDG’s better-than-expected execution over the past year".

In light of the upside, the analyst raised his price target to $35 from $31.

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Shares of SolarEdge Technologies closed at $55.65 yesterday.