UBS has upgraded SolarEdge Technologies to Buy from Neutral, citing the U.S. Federal Communications Commission’s ban on foreign-produced power inverters as a catalyst for supply constraints and pricing power in the American market.
The Swiss bank raised its price target for SolarEdge’s stock to $42 from $36, while noting the shares were trading at $29.88—close to a 52-week low of $28.21. The move follows the FCC’s July 28 decision to prohibit the import of new inverter models connected to communication networks, which UBS Evidence Lab estimates affects more than 50% of the U.S. inverter market.
SolarEdge, which relocated its manufacturing to the U.S. prior to the restrictions, operates commercial and industrial inverter production in Florida, residential inverters in Texas, and energy storage systems in Utah. The company’s U.S. supply chain positioning is expected to shield it from the ban’s immediate impact, potentially strengthening its market share.
UBS also raised its adjusted EBITDA estimates for SolarEdge, projecting $110 million for 2027 (up from $101 million) and $190 million for 2028 (up from $173 million). The bank’s outlook aligns with SolarEdge’s second-quarter 2026 results, which exceeded Wall Street expectations with adjusted earnings per share of $0.05 versus a projected loss of $0.02, and revenue of $346.2 million against an estimate of $341.99 million.
Analysts’ price targets for SolarEdge remain widely dispersed, ranging from $24 to $100, with a consensus recommendation of Hold. Mizuho, however, lowered its target to $38 from $71 while maintaining a Neutral rating, citing concerns over near-term challenges in the U.S. residential solar market despite positive trends in Europe and battery sales.
