SolarEdge Misses Out On Rebound, Loses Key Tax Credit Advantage: Analyst

Core Viewpoint - SolarEdge Technologies (SEDG) shares are experiencing a decline following a downgrade from Hold to Sell by GLJ Research analyst Gordon L. Johnson II, amid ongoing struggles in the U.S. and European markets [1] Group 1: Market Challenges - SolarEdge is facing significant headwinds, with analysts noting that the anticipated revival of the 48E 30% tax credit for solar companies is unlikely to benefit the company [1] - The Senate's tax-and-spend bill indicates that U.S. residential solar finance companies will lose the ability to sell tax credits to third parties, posing a potential existential threat to those reliant on inflated solar system values [2] Group 2: Performance Metrics - In April 2025, while the overall sales of inverters in California increased by 23.0% year-over-year, SolarEdge's sales only grew by 2.3% year-over-year, indicating a lack of demand pull-forward for the company [4] - As of the latest check, SEDG shares have dropped by 34.4%, trading at $15.74 [4]