SolarEdge Technologies (NASDAQ:SEDG) stock is dipping on Wednesday after the solar energy company’s shares were downgraded by Barclays analyst Christine Cho.
That saw the Barclays analyst drop SEDG stock from an “equal weight” rating to an “underweight” rating today. That’s worse than the analyst consensus “hold” rating for SEDG shares.
Adding to that trouble is a price target drop from $74 per share to $50 per share for SEDG stock. That represents a roughly 31.5% downside compared to yesterday’s closing price. It’s also well below the analyst consensus price prediction of $136.78 per share.
What’s Behind the SEDG Stock Downgrade?
Here’s what Barclays analyst Christine Cho had to say about SolarEdge Technologies in a note to clients obtained by CNBC:
“As we have parsed through our numbers, we think the road to recovery will be tougher for SEDG from the perspectives of top line, gross margins, and market share […] Lower demand and regulatory changes have led to elevated levels of channel inventories, which we believe will continue to slow growth and also contribute to lower gross margins at SEDG relative to peers.”
SEDG stock is down 5.1% as of Wednesday morning.
Investors looking for more of the most recent stock market stories are going to want to keep reading!
We have all of the latest insight into the hottest stock market news for Wednesday! That includes everything happening with shares of Spirit Airlines (NYSE:SAVE) stock, Rivian (NASDAQ:RIVN) stock and Joby Aviation (NYSE:JOBY) stock today. You can catch up on that news at the links below!
More Stock Market News for Wednesday
- SAVE Stock Alert: Is Spirit Airlines on the Brink of Bankruptcy?
- Rivian (RIVN) Stock Slides Following Deutsche Bank Downgrade
- JOBY Stock Alert: Joby Aviation Announces Infrastructure
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
