11:12 AM EDT, 03/10/2026 (MT Newswires) -- SolarEdge Technologies ( SEDG ) is seeing more stable revenue, margins, and liquidity, reducing downside risk, though weak solar demand could limit upside, BofA Securities said in a note Monday.

The firm said it expects SolarEdge ( SEDG ) to generate about $1.35 billion in revenue in 2026, supported by its strong position in the third-party ownership, or TPO, market, even as US residential solar demand is expected to fall about 27%, as 2026 is shaping up to be an "exceedingly difficult year" with the end of the 25D tax credit in 2025 projected to reduce installations financed by cash or loans by 60% to 80%.

SolarEdge ( SEDG ) regained the top market share in US residential inverters in mid-2025 for the first time since 2021, BofA said, adding that this is due to growth in TPO solar installations and the rollout of single-SKU inverters, which make installation easier for dealers.

Besides its $1.35 billion revenue outlook for SolarEdge ( SEDG ), BofA also forecast a 23.6% gross margin, and $4.8 million in EBITDA for 2026. For 2027, it expects $1.55 billion in revenue, 28.6% gross margin, and $124 million in EBITDA. For 2028, the firm forecast $1.68 billion in revenue, 30.6% gross margin, and $175 million in EBITDA.

BofA upgraded SolarEdge ( SEDG ) stock to neutral from underperform, and raised its price target to $40 from $17.

Shares of SolarEdge ( SEDG ) were up more than 7% in morning trading Tuesday.

Price: 37.12, Change: +2.53, Percent Change: +7.30