SolarEdge stock jumps over 10% as TD Cowen upgrade puts SEDG back in play

NEW YORK, Jan 12, 2026, 12:54 EST — Regular session

• SolarEdge shares climbed 10.6%, hitting $36.38 by midday trading
• TD Cowen raises its rating to “buy” and bumps the price target up to $38
• Solar stocks also rise as attention turns to upcoming earnings and margin forecasts

Shares of SolarEdge Technologies surged 10.6%, hitting $36.38 by midday Monday following a TD Cowen upgrade. The analyst lifted the price target to $38 from $34. The stock peaked at $36.39 earlier, with roughly 2.2 million shares changing hands.

This bounce is significant since SolarEdge serves as a high-beta play on the solar equipment cycle. The stock reacts sharply to sentiment changes, often attracting momentum traders and short-term hedgers in the process.

The timing is tricky for the group. Investors are wrestling with whether rooftop solar demand is leveling off or merely taking a breather amid inventory clearances. Meanwhile, manufacturers are pushing “turnaround” narratives that depend on margins staying steady through 2026.

TD Cowen’s Jeff Osborne and his team zeroed in on execution as the key to the turnaround. They highlighted “financial strength, market share expansion, innovation, and U.S. manufacturing” as the main pillars driving progress, they wrote. Barron’s

The note also highlighted SolarEdge’s growing U.S. production and exports, which may qualify for the 45X credit—a U.S. tax incentive rewarding manufacturers for making specific clean-energy parts domestically. The broker anticipates an investor day in the spring that could shift margin targets.

Shares tied to solar saw gains too. Enphase Energy climbed 6.1%, Sunrun jumped 6.0%, and the Invesco Solar ETF rose 4.2%. The S&P 500 tracker SPY, however, barely moved.

SolarEdge offers inverters and power optimizers installed between solar panels and the grid. These devices convert the panels’ output into usable electricity and control production at the module level. As a result, the company’s performance closely tracks installation volumes, dealer stock levels, and how quickly new projects get signed by homeowners and businesses.

The backdrop remains complicated. At times, demand for residential solar in Europe has fallen off as electricity prices softened and Chinese competitors ramped up their presence, Reuters reported in earlier coverage of the company.

Yet the boost from an analyst call rarely lasts. A hiccup in shipments, fresh price cuts, or weaker-than-expected margin gains could quickly derail the upgrade story and bring the downside risks back into focus.

SolarEdge hasn’t set a date for its earnings release yet, but Nasdaq projects the report will drop around Feb. 18. Investors are focused on any 2026 guidance, particularly around gross margin, and hope for a clearer schedule for the upcoming investor day.

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