Deutsche Bank analyst Corinne Blanchard said elevated interest rates are weighing on SolarEdge products’ U.S. demand and sees risk to fourth-quarter and 2027 earnings.

  • Blanchard wrote that core revenue growth in coming quarters is likely to run softer than expected because of U.S. market conditions, though European trends, particularly in storage, could offset part of that weakness. 
  • Deutsche has a ‘Hold’ rating and a $34 price target on SEDG. 
  • Separately, Barclays lowered its price target on SolarEdge to $36 from $37 and maintained an ‘Equal Weight’ rating.

Shares of SolarEdge Technologies (SEDG) fell on Wednesday after Deutsche Bank labeled the stock a short-term sell idea, citing softer U.S. demand and risk to later-year earnings.

The shares were down about 5% at the time of writing, trading near $32.30.

Deutsche Bank’s Tactical Call On SEDG

The decline followed a research note from Deutsche Bank analyst Corinne Blanchard, who placed a “Catalyst Call: Sell” on SolarEdge as a short-term investment idea. The firm kept a ‘Hold’ rating and a $34 price target. Blanchard wrote that core revenue growth in coming quarters is likely to run softer than expected because of U.S. market conditions, though European trends, particularly in storage, could offset part of that weakness.

She said elevated interest rates are weighing on U.S. demand and sees risk to fourth-quarter and 2027 earnings. Deutsche Bank’s fourth-quarter 2026 revenue estimate sits about 2% below consensus, and its 2027 revenue projection is about 5% below. Blanchard pointed to the company’s third-quarter report, expected around Nov. 4, and the RE+ conference on Nov. 16–19 as points where guidance and industry commentary could reset expectations.

Separately, Barclays lowered its price target on SolarEdge to $36 from $37 and maintained an ‘Equal Weight’ rating. The firm said the company’s safe-harbor disclosures give greater visibility into revenue heading into the third-quarter report.

A Recovery With Limits

SolarEdge designs power optimizers, inverters and related storage products for solar installations. Second-quarter results released in August showed revenue of $346.2 million, up about 20% from a year earlier. On an adjusted basis, the company posted operating income of $10.2 million and diluted earnings of $0.05 a share.

Management guided third-quarter revenue to $310 million to $340 million and reiterated that range at a Sept. 10 investor day, where it also discussed an 800-volt direct-current powertrain aimed at data centers. The company has said it assumes fourth-quarter revenue will be slightly below the third quarter on seasonality, though that is not formal guidance.

On investor day, management also set a 2029 target of $2.4 billion in revenue and a 35% gross margin, with about $1.8 billion from the core solar business and $600 million from AI-factory power products. It also said key residential and commercial customers had signed $1.7 billion of firm delivery commitments for 2027 through mid-2030.

How Did SEDG Retail Traders React?

On Stocktwits, retail sentiment around SEDG stock stayed within bearish territory over the past 24 hours, while message volume started at normal levels.

SEDG stock has gained 12% year-to-date. 

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