Deutsche Bank reiterates SolarEdge stock rating on 800V DC outlook

Deutsche Bank has reaffirmed a Hold rating and $33.00 price target for SolarEdge Technologies Inc. (NASDAQ: SEDG) based on discussions with the company’s leadership regarding emerging data center technology. The stock is currently trading at $36.08, surpassing the analyst’s target and suggesting it may be overvalued relative to its Fair Value estimate.

Deutsche Bank’s analysts met with SolarEdge CEO Shuki Nir to explore the transition to 800V DC and solid-state transformer architecture. The company forecasts that 800V DC technology adoption will intensify as data center power-density needs grow, with a majority of new data centers projected to adopt this architecture by 2030.

However, the firm faces near-term challenges, including a gross profit margin of 21% and negative earnings of $4.48 per share over the past year. SolarEdge aims to capitalize on this growth opportunity while addressing electrical arcing and safety concerns that may take two to three years for the industry to fully embrace the technology.

SolarEdge has announced firm commitments totaling $1.7 billion through 2030, which could potentially expand to over $5 billion if a 30% storage attachment is achieved. Despite these commitments, the company anticipates its fourth-quarter 2026 results to fall slightly short of third-quarter projections, according to CEO Shuki Nir.

Recent news includes Jefferies lowering its price target to $31 from $45, citing residential market weakness and projecting revenue and EBITDA below expectations for 2027-2028. Mizuho, on the other hand, raised its price target to $40 from $38, presenting a fiscal 2029 framework projecting $2.4 billion in revenue. Both Jefferies and Oppenheimer maintain their Hold and Perform ratings on SolarEdge, with Oppenheimer highlighting the company’s growth drivers and technological differentiation.

Notably, SolarEdge’s U.S. commercial and industrial rooftop market share has surged from 29% in late 2024 to 57% in mid-2026. These developments present investors with a nuanced outlook on the company’s future performance.