11:40 AM EDT, 05/09/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We decrease our 12-month target price by $20 to $60, or 14.9x our 2025 EPS estimate, a large discount to SEDG's three-year average forward P/E of 42.5x, which we think is warranted by ongoing inventory clearing in the supply chain amid lower demand. We widen our 2024 loss per share estimate by $1.02 to -$2.64 and decrease our 2025 EPS forecast by $0.84 to $4.02. SEDG posted a Q1 adj. loss per share of -$1.90 vs. EPS of $2.90, $0.31 below consensus, despite a top-line beat of 5%. Q1 sales declined 78% Y/Y and adj. EBITDA fell $305 million Y/Y to negative $108 million. Q1 adj. gross margin was negative (-6.5%) vs. 3.3% in Q4 2023 and 31.8% in Q1 2023. The sell-through was down 19% Q/Q in the U.S. residential market, down 22% Q/Q in U.S. commercial, down 20% Q/Q in European residential, and down 13% Q/Q in European commercial. We expect markets to recover in 2025 (dependent on interest rates going down and power prices trending up), but the timing and magnitude of this recovery has become increasingly opaque.