SolarEdge Price Target Jumps to $49 as European Gas Costs Surge 94%
Jefferies upgraded SolarEdge to Hold from Underperform, raising its price target to $49 from $30 and forecasting 17% and 19% revenue boosts for 2027 and 2028. It noted European gas prices up 94% since the Middle East conflict has lifted regional revenue to $1.9B in 2023 from $630M in 2020.
1. Rating Upgrade and Price Target Increase
Jefferies moved SolarEdge from an Underperform to a Hold rating and lifted its price target by 63%, from $30 to $49, reflecting improved earnings visibility and market share gains in key segments.
2. European Energy Volatility Driving Demand
A 94% rise in European gas prices since the latest Middle East conflict has reignited demand for solar and storage solutions, as businesses and households seek to stabilize energy costs and reduce reliance on volatile fossil fuels.
3. Revenue Growth and Forecast Revisions
SolarEdge’s European revenue surged to $1.9 billion in 2023 from $630 million in 2020. Jefferies raised its 2027 and 2028 revenue forecasts by 17% and 19%, respectively, while holding 2026 estimates steady due to cautious customer spending.
4. Valuation Context
Shares have climbed roughly 60% year-to-date and trade near 18x estimated 2027 EV/EBITDA, slightly above peers. Jefferies stopped short of a Buy rating, citing stretched valuation despite the improved demand outlook.