Solaredge leads selloff in solar stocks after Wells Fargo downgrade

JinkoSolar Holding

06/11/2023 17:18

** Solaredge shares  SEDG.O  slide 7.6% to $69.9 after Wells
Fargo downgrades the solar inverter maker to "equal-weight" from
"overweight"
    ** "Although SEDG trades at a discounted valuation, a lack
of visibility into a recovery/ significant uncertainties move us
to the sidelines," Wells Fargo analysts said, while cutting PT
by more than half to $82
    ** Wells Fargo cites weak Q4 revenue forecast, surprise
decline in sell-through in Europe in September among reasons for
the downgrade; also warns that high fixed cost base could
permanently impair gross margins if demand doesn't recover 
    ** Median PT is $150 vs $300 just two months ago, average
rating of 31 analysts covering the stock is "hold", as per LSEG
data 
    ** SunPower  SPWR.O  drops 7.7% after Wells Fargo cuts PT to
$6 from $10
    ** Enphase Energy  ENPH.O  down 3.4%, Sunnova Energy
 NOVA.N  drops 4.9%, JinkoSolar  JKS.N  dips 0.4%, Sunrun
 RUN.O  off 5.5%, First Solar  FSLR.O  down 3.6%, while Invesco
Solar ETF  TAN.P  off 2.0%
    ** Stocks down in the range of 1.7% and 75% YTD 

 (Reporting by Sruthi Shankar in Bengaluru)
 ((sruthi.shankar@thomsonreuters.com;))