SolarEdge Technologies (NASDAQ:SEDG) has been analyzed by 19 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.
The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $86.63, a high estimate of $133.00, and a low estimate of $61.00. Highlighting a 11.49% decrease, the current average has fallen from the previous average price target of $97.88.
Analyzing Analyst Ratings: A Detailed Breakdown
An in-depth analysis of recent analyst actions unveils how financial experts perceive SolarEdge Technologies. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
Key Insights:
- Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to SolarEdge Technologies. This offers insight into analysts' perspectives on the current state of the company.
- Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of SolarEdge Technologies compared to the broader market.
- Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of SolarEdge Technologies's stock. This examination reveals shifts in analysts' expectations over time.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into SolarEdge Technologies's market standing. Stay informed and make well-considered decisions with our Ratings Table.
Stay up to date on SolarEdge Technologies analyst ratings.
Delving into SolarEdge Technologies's Background
SolarEdge Technologies designs, develops, and sells direct current optimized inverter systems for solar photovoltaic installations. The company system consists of power optimizers, inverters, and cloud-based monitoring platform and addresses a broad range of solar market segments, from residential solar installations to commercial and small utility-scale solar installations. The company sells its products directly to solar installers, engineering, procurement, and construction firms and indirectly to solar installers through distributors and electrical equipment wholesalers.
Unraveling the Financial Story of SolarEdge Technologies
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
Negative Revenue Trend: Examining SolarEdge Technologies's financials over 3 months reveals challenges. As of 31 December, 2023, the company experienced a decline of approximately -64.52% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: SolarEdge Technologies's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -51.38%, the company may face hurdles in effective cost management.
Return on Equity (ROE): SolarEdge Technologies's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -6.62%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): SolarEdge Technologies's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -3.52%, the company may face hurdles in achieving optimal financial returns.
Debt Management: SolarEdge Technologies's debt-to-equity ratio is below the industry average. With a ratio of 0.3, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
The Significance of Analyst Ratings Explained
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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