MILPITAS, California, August 27, 2026, 00:05 (PDT) — SolarEdge Technologies (SEDG.O) stock jumped 10.7%, boosting its market capitalization by $197 million, following the company’s wager on FCC-certified inverters.
- SolarEdge stock finished up 10.71% at $33.08 on August 26.
- The surge boosted quoted equity value by approximately $197 million.
- UBS raised its price target to $42 and upgraded the stock to Buy.
- Shares traded totaled 6.53 million, more than double the three-month average at 2.1 times higher.
Shares of SolarEdge Technologies climbed 10.71% following an upgrade by UBS, boosting the inverter company’s quoted market value by roughly $197 million.
SolarEdge Technologies, Inc. (NASDAQ:SEDG) ended trading at $33.08 on August 26. Trading volume totaled 6.53 million shares, compared to a three-month average of 3.08 million.
The valuation reaction was significant alongside UBS’s updated operating projections. The increase for the day was about equal to the broker’s $190 million adjusted-EBITDA forecast for 2028.
UBS lifted its rating on SolarEdge to Buy from Neutral on August 26, increasing the price target to $42 from the previous $36. This updated target suggests a 27% potential gain from Wednesday’s closing price UBS upgrade.
The broker referenced recent U.S. limitations on foreign-made connected inverters. UBS calculates that suppliers impacted by the measures account for over half of the U.S. inverter market.
The Federal Communications Commission placed foreign-made power inverters on its Covered List on July 28. Any new devices from listed foreign entities are now ineligible for FCC certification FCC order.
SolarEdge produces commercial inverters at its Florida facility and residential units in Texas. UBS says this manufacturing presence could enable the company to grow its market share and strengthen pricing.
| Investor measure | Previous | Current or forecast | Change |
|---|---|---|---|
| SEDG share price | $29.88 | $33.08 | +10.71% |
| UBS price target | $36 | $42 | +16.7% |
| UBS 2027 adjusted EBITDA | $101 million | $110 million | +8.9% |
| UBS 2028 adjusted EBITDA | $173 million | $190 million | +9.8% |
| Quarterly revenue | $346.2 million in Q2 | $325 million Q3 midpoint | -6.1% |
The policy thesis comes after a significant rebound in operations. Revenue for the second quarter increased by 19.6% year-on-year, reaching $346.2 million. Gross margin climbed to 27.5%, up from 11.1% SolarEdge second-quarter filing.
Battery shipments surged to 426 megawatt-hours, more than twice the previous level. Inverter shipments declined to 62,600 units from 86,200. The figures indicate storage is driving much of the rebound.
SolarEdge reported $3.1 million in free cash flow for the second quarter. The company held $527.3 million in cash, with inventory still elevated at $599.8 million.
Short-term projections are weaker. The midpoint for third-quarter revenue, at $325 million, is 6.1% lower than sales in the second quarter. Management projects a gross margin in the range of 22% to 26% company results.
Analyst views remain divided. Among 25 analysts, the consensus rating stands at Hold. The average target price is $39.15, implying an 18.4% potential increase, with projections spanning from $24 to $100 analyst consensus.
Risks: Implementation of FCC rules may be postponed, include exemptions or see changes in enforcement. Demand for residential solar continues to be affected by financing costs. Gains for shares driven by policy could materialise more slowly than investors currently anticipate.
The next challenge is execution. SolarEdge needs to turn a regulatory window into sales while maintaining pricing and avoiding inventory buildup. By Wednesday’s close, much of UBS’s projected long-term earnings growth was already factored in by investors.
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