Commentary: SEDG is an Israeli company that specializes in solar inverters and energy storage systems, providing inverters for data centers, industrial facilities, and residential households. Up 6% pre-market.
UBS upgrades $SEDG.US to Buy, raising its target price from $36 to $42.
Analyst comment: “In our view, SolarEdge is the primary beneficiary of the U.S. FCC’s ban on the import of new inverter models. We expect this ban will create a supply-constrained U.S. market, driving SEDG to gain market share and potentially enhancing its pricing power.
We have increased our 2027/28E adjusted EBITDA forecasts from the prior $101/$173mn to $110/$190mn. We believe that, given SEDG’s profitability growth has re-accelerated, its current valuation of 14x 2027E and 7x 2028E EV/EBITDA is attractive. Based on our 13x target multiple, we see the market pricing for YE3Q28 EBITDA at $111mn, which is 31% lower than UBS’s.
On July 28, 2026, the U.S. FCC announced a ban on the import of new foreign-made power inverters. The ban applies to new foreign-made inverter models that are connected to communications networks. According to UBS evidence lab data, this will affect more than 50% of the U.S. inverter market.
SEDG already holds a prominent market position in the C&I inverter space. We expect that market-share growth and potential pricing power will further increase SEDG’s C&I segment volume and profit margins. In addition, this ban is likely to create market opportunities for SEDG’s utility-scale inverter product (330kW TerraMax), which, in our view, previously had limited market adoption.
Before the FCC restricted imports of inverters, SEDG had already moved its manufacturing operations to the United States. SEDG’s C&I manufacturing is concentrated in Florida, residential inverters are in Texas, and energy storage products are in Utah.”
UBS upgrades $SEDG.US to Buy, raising its target price from $36 to $42.
Analyst comment: “In our view, SolarEdge is the primary beneficiary of the U.S. FCC’s ban on the import of new inverter models. We expect this ban will create a supply-constrained U.S. market, driving SEDG to gain market share and potentially enhancing its pricing power.
We have increased our 2027/28E adjusted EBITDA forecasts from the prior $101/$173mn to $110/$190mn. We believe that, given SEDG’s profitability growth has re-accelerated, its current valuation of 14x 2027E and 7x 2028E EV/EBITDA is attractive. Based on our 13x target multiple, we see the market pricing for YE3Q28 EBITDA at $111mn, which is 31% lower than UBS’s.
On July 28, 2026, the U.S. FCC announced a ban on the import of new foreign-made power inverters. The ban applies to new foreign-made inverter models that are connected to communications networks. According to UBS evidence lab data, this will affect more than 50% of the U.S. inverter market.
SEDG already holds a prominent market position in the C&I inverter space. We expect that market-share growth and potential pricing power will further increase SEDG’s C&I segment volume and profit margins. In addition, this ban is likely to create market opportunities for SEDG’s utility-scale inverter product (330kW TerraMax), which, in our view, previously had limited market adoption.
Before the FCC restricted imports of inverters, SEDG had already moved its manufacturing operations to the United States. SEDG’s C&I manufacturing is concentrated in Florida, residential inverters are in Texas, and energy storage products are in Utah.”
