Should I Buy SEDG? SEDG 2026 Analysis

Should You Buy Solaredge Technologies Inc (SEDG) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

34.360

1 Day change

-4.02%

52 Week Range

48.600

Analysis Updated At

2026/01/26

SolarEdge Technologies Inc (SEDG) is not a strong buy at this moment for a beginner investor with a long-term focus. While the clean energy sector shows promise and the company has seen some positive developments in analyst ratings and technical indicators, its recent financial performance is weak, with significant declines in net income, EPS, and gross margin. Additionally, there are no strong proprietary trading signals or congress trading data to support immediate action. The stock's near-term trend also indicates potential downside risks.

Technical Analysis

The technical indicators show a mixed picture. The MACD is positive and contracting, and the moving averages are bullish (SMA_5 > SMA_20 > SMA_200). The RSI is neutral at 64.275, and the stock is trading near a key resistance level (R1: 36.185). However, the stock trend analysis suggests a 40% chance of declines in the next day (-1.5%), week (-3.09%), and month (-3.41%).

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Technical Summary

Sell

Buy

Positive Catalysts

The clean energy sector is gaining momentum, with global renewable energy surpassing coal and strong policy support.
Analysts have recently upgraded the stock, with TD Cowen upgrading to Buy and Morgan Stanley improving its rating to Equal Weight, citing improved demand fundamentals and competitive positioning in Europe.

Neutral/Negative Catalysts

Weak financial performance in Q3 2025, with net income dropping by -95.93% YoY and gross margin declining by -105.48% YoY.
Stock trend analysis indicates potential short-term declines.
No significant hedge fund or insider trading activity, and no recent congress trading data.

Financial Performance

In Q3 2025, SolarEdge's revenue increased by 44.49% YoY to $340.18M. However, net income dropped significantly to -$50.06M (-95.93% YoY), EPS fell to -0.84 (-96.11% YoY), and gross margin declined to 16.92 (-105.48% YoY). This indicates significant profitability challenges despite revenue growth.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analyst sentiment has been improving recently. TD Cowen upgraded the stock to Buy with a price target of $38, citing a turnaround and competitive positioning. Deutsche Bank raised its target to $35 but maintained a Hold rating. However, some analysts remain cautious, with Goldman Sachs and Citi maintaining Neutral and Sell ratings, respectively, citing challenges in revenue and earnings outlooks.

18 Analyst Rating

Wall Street analysts forecast SEDG stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for SEDG is 32.56 USD with a low forecast of 6.9 USD and a high forecast of 44 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

1 Buy

12 Hold

5 Sell

Hold

Current: 35.800

Low

6.9

Averages

32.56

High

Current: 35.800

Low

6.9

Averages

32.56

High

TD Cowen

Hold

Buy

upgrade

$34 -> $38

AI Analysis

2026-01-09

Reason

TD Cowen

Price Target

$34 -> $38

AI Analysis

2026-01-09

upgrade

Hold

Buy

Reason

TD Cowen upgraded SolarEdge to Buy from Hold with a price target of $38, up from $34. The firm says the company is executing its turnaround with the launch of Nexis and Single supporting margins and market share gains. Ramping U.S. manufacturing and exports improves SolarEdge's competitive position in Europe, the analyst tells investors in a research note.

Deutsche Bank

Hold

maintain

$28 -> $35

2026-01-07

Reason

Deutsche Bank

Price Target

$28 -> $35

2026-01-07

maintain

Hold

Reason

Deutsche Bank raised the firm's price target on SolarEdge to $35 from $28 and keeps a Hold rating on the shares.

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SEDG Should I Buy

SEDG Should I Buy

Should You Buy Solaredge Technologies Inc (SEDG) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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