SolarEdge Shares Face Critical Test Amid Industry Revival

SolarEdge Technologies continues to navigate turbulent market conditions, with its stock remaining under significant downward pressure. In the latest trading session, the company's shares declined by 3.3 percent, closing at $37.50. This persistent weakness comes despite some modest positive adjustments from financial analysts, though the overall sentiment remains cautious with the average price target standing at just $21.35.

The analytical community remains largely skeptical about SolarEdge's near-term prospects, with most maintaining "sell" recommendations. However, recent weeks have brought surprising upward revisions to price targets from major institutions. Citigroup adjusted its projection from $9 to $30 per share while keeping its sell rating intact. Similarly, JPMorgan increased its target from $27 to $29, maintaining a neutral stance on the stock.

This creates a remarkable divergence in market assessments, leaving investors to ponder whether SolarEdge is approaching a genuine turnaround or facing further deterioration in value.

Financial Performance Tells Concerning Story

Current financial metrics reveal the challenges confronting the solar technology company. For the second quarter of 2025, SolarEdge reported a loss of $0.81 per share. While some improvement is anticipated, third-quarter projections still indicate a negative EPS of $0.41 with expected revenue of $332 million.

These figures emerge against a backdrop of broader sector strength, where clean energy investments are delivering impressive returns throughout 2025. Popular exchange-traded funds tracking the industry, including the Invesco Roundhill Clean Energy ETF (PBW) and iShares Clean Energy UCITS ETF (INRG), have registered substantial gains—creating a stark contrast to SolarEdge's performance.

Should investors sell immediately? Or is it worth buying SolarEdge?

US Manufacturing Strategy: Potential Lifeline?

SolarEdge is placing substantial emphasis on its American manufacturing initiative as a potential pathway to recovery. The company has already commenced shipments of US-produced solar solutions to Australia, with additional international deliveries scheduled for the current quarter.

This strategic pivot aims to leverage domestic tax advantages to enhance global competitiveness and improve profit margins. However, the company continues to grapple with negative net margins and intense pricing competition from Chinese manufacturers, creating significant headwinds.

Technical indicators further complicate the outlook, with chart analysis suggesting overbought conditions that may concern potential investors.

November Report Looms Large

All attention now turns to the quarterly financial report scheduled for November 5, which market participants hope will clarify whether the US manufacturing approach can generate the necessary cash flow improvement. Until then, investors in SolarEdge shares face continued uncertainty in volatile trading conditions.

The fundamental question remains whether the company's strategic repositioning can effectively counterbalance the combined pressures of financial losses and aggressive international competition that have characterized its recent performance.