SEDG Stock Rises Premarket: UBS Sees 40% Upside Potential From US Inverter Curbs

• UBS upgraded SolarEdge to Buy from Neutral with a price target of $42, up from $36, according to The Fly.
• The firm increased its EBITDA estimates on SolarEdge and said the stock’s valuation looks attractive.
• SEDG shares are on track for only a second gain in eight sessions.

SolarEdge Technologies (SEDG) was in the spotlight on Wednesday after UBS said the solar-equipment maker could be a key beneficiary of new U.S. restrictions on foreign-made power inverters.

SEDG shares were up 5.4% in pre-market trading, and are on track for only a second gain in eight sessions.

Supply Shortage Could Be Beneficial For SEDG

On Wednesday, UBS upgraded SolarEdge Technologies to ‘Buy’ from ‘Neutral,’ and raised its price target to $42 from $36, suggesting a potential upside of about 40% from the stock’s last close.

The Federal Communications Commission (FCC) recently added foreign-produced connected inverters to its Covered List, citing cybersecurity and supply-chain threats to critical infrastructure.

The measure generally prevents new models from receiving the authorization required to be imported or sold in the country. Previously authorized models are not automatically prohibited.

UBS believes the restrictions could tighten U.S. inverter supply, helping SolarEdge gain market share and potentially raising prices. The firm increased its earnings before interest, taxes, depreciation and amortization (EBITDA) estimates and said SolarEdge’s valuation looks attractive. SolarEdge posted an EBITDA of $15.93 million in the second quarter.

Minimum Import Prices On Polysilicon To Affect Broader Solar Industry

Earlier in August, the Trump administration announced minimum import prices for polysilicon and related products, along with an additional 15% tariff on certain derivatives beginning Dec. 4. Polysilicon is the main raw material used to produce solar cells.

The minimum prices include $21 per kilogram for polysilicon, $0.22 per watt for solar cells and $0.38 per watt for modules.

The measures aim to reduce U.S. reliance on China, which accounts for roughly 80% of global solar manufacturing capacity.

Retail sentiment surrounding SEDG on Stocktwits turned ‘neutral’ from ‘bearish’ over the past 24 hours.

SEDG stock is up 10% so far in 2026.

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