This Mid-Cap Solar Stock Has Rallied 50% Since The Middle East Conflict Began – Here’s What Jefferies Said About Its Potential Europe Traction

• Jefferies upgraded the stock to ‘Hold’ from ‘Underperform’ and raised the price target to $49 from $30, according to The Fly.
• The brokerage expects a demand uptick in Europe that could support SolarEdge’s earnings.
• he Dutch TTF Natural Gas Futures have surged nearly 92% since the conflict began.

Shares of SolarEdge Technologies (SEDG) jumped 13% on Friday to their highest levels since May 2024, after Jefferies said the company could potentially benefit from the volatility in energy markets caused by the conflict in the Middle East.

SEDG stock is on track to post its sixth straight session of gains, and has surged more than 50% since the U.S.-Israeli strikes on Iran commenced on February 28.

The company develops solar-based power products, including electric vehicle chargers, inverters, and various storage and backup options.

Jefferies Draws Parallels With Russia-Ukraine War

On Friday, Jefferies upgraded SolarEdge to ‘Hold’ from ‘Underperform’ and raised the price target to $49 from $30, according to The Fly.

As the conflict in the Middle East fuels volatility in European energy prices, the impact is comparable to the Russia-Ukraine conflict, which drove SolarEdge Technologies’ Europe revenue to $1.9 billion in 2023 from $630 million in 2020, Jefferies said.

The brokerage expects a similar, though “not as dramatic,” demand uptick in Europe that could support earnings. According to SolarEdge’s financial statements for the full-year (FY) 2023, nearly two-thirds of its overall total electrical power capacity was shipped to Europe.

Meanwhile, the Dutch TTF Natural Gas Futures, the European benchmark, have surged nearly 92% since the conflict began, while Brent Crude Futures for May 2026 deliveries have jumped around 53%.

How Did Stocktwits Users React?

Retail sentiment on Stocktwits turned ‘neutral’ from ‘bearish’ a day earlier, but chatter was largely bullish.

One user urged picking up fresh positions.

Another user said the stock is also benefiting from its Nexis platform, launched a day earlier. The Nexis system combines a new three-phase inverter of up to 20kW, a modular battery, and a full-home backup system that can be easily installed.

Year-to-date, the stock has gained around 75%.

Read also: This Nano-Cap Pharma Stock Surged 80% Days After A Listing Warning — What’s Fueling the Rally?

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