UBS analyst Jon Windham has downgraded Israeli solar energy company SolarEdge Technologies Inc. (Nasdaq: SEDG) from "Buy" to "Neutral." However, he has raised the company's price target from $73 to $90, a 10% upside on yesterday's closing price.
UBS notes that SolarEdge's share price has risen 150% over the past year and 24% in the past month after posting strong second quarter results. However, Windham expects the second half of 2019 to be the cycle peak in SolarEdge's year on year adjusted EBITDA and sees the rise in stock moderating over the next two years, as the company's growth falls into line with the world's solar energy market.
SolarEdge's share price fell sharply yesterday but it was more affected by the shock resignation of its founder, CEO and co-chairman Guy Sella than the downgrading by UBS. Sella, who was diagnosed with colon cancer two years ago, is now stepping down for health reasons. EVP Global Sales Zvi Lando has been appointed to serve as Acting CEO. Last week Nadav Zafrir, cybersecurity think-tank and fund Team8 founder and former Commander of the IDF's Technology & Intelligence Unit 8200, was appointed co-chairman.
SolarEdge's share price was down 6.61% on Wall Street yesterday at $82.04, giving a market cap of $3.936 billion.
Published by Globes, Israel business news - en.globes.co.il - on August 23, 2019
© Copyright of Globes Publisher Itonut (1983) Ltd. 2019