SolarEdge (SEDG) Stock Jumps 4% on Jefferies Upgrade Amid European Energy Crisis

Key Takeaways

• Jefferies elevated SolarEdge from Underperform to Hold while increasing the price target from $30 to $49
• European TTF natural gas prices have jumped approximately 94% amid recent geopolitical tensions
• During the previous energy crisis, SolarEdge’s European sales expanded from $630M in 2020 to $1.9B by 2023
• The firm boosted its 2027 and 2028 revenue projections by 17% and 19% respectively
• SEDG shares have surged roughly 60% year-to-date, approaching the 52-week peak of $48.60

SolarEdge (SEDG) shares advanced approximately 4% during Friday’s premarket session following an analyst upgrade and improved price outlook from Jefferies.

SolarEdge Technologies, Inc., SEDG

Jefferies shifted its stance on SEDG from Underperform to Hold while boosting the price objective from $30 to $49 — representing approximately 7.3% potential upside from Thursday’s closing price.

The catalyst behind Jefferies’ revised outlook centers on energy market dynamics. Natural gas prices in Europe, measured by the TTF benchmark, have climbed roughly 94% since the onset of the latest Middle Eastern conflict. Such dramatic price increases historically incentivize consumers and enterprises to transition toward solar and energy storage solutions as hedges against volatile energy expenses.

This scenario has played out previously. During 2022, when Russian natural gas supply disruptions triggered soaring European energy costs, solar installations accelerated significantly. SolarEdge‘s revenue from European markets expanded from $630 million in 2020 to $1.9 billion by 2023.

Jefferies acknowledges that a complete replay of that surge seems unlikely. Europe’s renewable energy infrastructure has matured considerably, and electricity prices have remained comparatively stable despite rising gas costs. Any uptick in demand will likely be more gradual this time around.

Nevertheless, the investment firm believes SolarEdge is better positioned than before. Inventory adjustments that previously pressured financial performance have largely resolved, and SEDG has expanded its footprint in commercial and industrial segments while maintaining residential market share.

Updated Revenue Projections

Jefferies increased its revenue expectations for 2027 by 17% and for 2028 by 19%. The 2026 forecast remained essentially flat, with the firm noting continued customer hesitancy amid prevailing macroeconomic uncertainty.

Despite the upgrade, Jefferies refrained from issuing a Buy recommendation. Valuation concerns remain central to this cautious stance. SEDG has rallied approximately 60% in 2026 thus far and currently trades around 18x projected 2027 EV/EBITDA — marginally above comparable companies. Jefferies suggests the market has already incorporated expectations of improved demand and competitive positioning into current pricing.

The wider analyst community maintains a reserved posture. Among 25 analysts tracking SEDG, just one recommends buying, 18 rate it a Hold, and six suggest selling. MarketBeat’s consensus lands at “Reduce” with an average price target of $29.09 — substantially below current trading levels.

Latest Quarterly Performance

SolarEdge’s latest quarterly results exceeded Wall Street expectations. The company reported EPS of -$0.14, surpassing the consensus estimate of -$0.19. Revenue reached $333.8 million against forecasts of $330.3 million, marking a 70.9% year-over-year increase.

Net margin remains in negative territory at -34.23%, and analysts anticipate full-year EPS of -$4.54 for the current fiscal period.

Institutional investors control approximately 95% of outstanding shares. Multiple major stakeholders expanded their holdings in recent quarters, with UBS Group notably increasing its position by 234.8% during Q3.

SEDG commenced Friday trading at $45.66, marginally below its 52-week high of $48.60.

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