SolarEdge Technologies shares rise following UBS upgrade

SolarEdge Technologies shares rose following an upgrade from UBS Group, which moved the stock from a neutral rating to a buy rating. UBS increased its price target for the company from $36.00 to $42.00, suggesting a potential upside of approximately 40%.

The upgrade is driven by potential market advantages resulting from Federal Communications Commission (FCC) restrictions on foreign-made power inverters. The FCC recently added foreign-produced connected inverters to its Covered List due to cybersecurity and supply-chain concerns, a move that could tighten U.S. inverter supplies and allow SolarEdge to capture more market share.

While UBS has increased its EBITDA estimates for the company, other brokerages have provided mixed outlooks. Recent reports from Susquehanna, Deutsche Bank, and Royal Bank of Canada included lowered price targets or neutral/hold ratings.