SolarEdge Stock Hits Long-Term Support: Buy or Wait? – Magic Post

As the years go by, 2024 has not been a great year for stocks Solar Edge Technologies Nasdaq: SEDG. Shares with a market capitalization of $800 million decreased by 85% Since the beginning of January, which means trading is back at 2016 levels. For any investor That was it Having been involved with SolarEdge for the past eight years, it has been a rollercoaster ride, to say the least.

SolarEdge technologies today

SEDG

SolarEdge technologies

$13.11 -0.73 (-5.27%)

(As of 05:23 PM ET)

52 week range

$10.24

▼

$102.62

Price target

$22.40

At one point during mania The technology bubble fueled by the pandemicthe stock rose almost 2,500%. But like a lot of hot stocks that… He came to excel Given the froth of the market at the time, there was little substance behind it all. Hence, the astonishing decline since then.

However, for those of us Who are they? When looking at SolarEdge with a fresh look, there are several reasons To be enthusiasticEven with caution. The stock is up 40% in the past month, and it’s still flat a lot In a downtrend, it is now trading at a long-term support level.

How Technical Support Levels Could Boost SolarEdge Stock

It was around $14 tag that Bears They ran out of steam 8 years ago, and it’s starting to look like they’re in danger of doing the same thing this time around. Regardless of fundamental performance or broader market sentiment, technical levels like these can greatly influence a stock’s direction and can often be self-fulfilling prophecies.

When a beleaguered stock approaches a key level of support, many investors expect it to hold, so the bravest investors often start buying beleaguered stocks when it approaches that level. This is a growing demand It gives the stock a much-needed boost He puts the bears on their back feet. It then appears that the support line is… actually As we continue, more investors take this as a sign of confirmation and start accumulating. And before you know it, the bears have given up trying to take the stock to new lows. They are Buy to cover their short positions, and the stock rises, perhaps even with short Stress thrown in for good measure.

Goldman Sachs upgrades SolarEdge from buy to sell

now, We are some time away from this being the case with SolarEdge, but the technical conditions are there. There’s also the fact that stock has just arrived Double upgrade From the team at Goldman Sachs. Having previously rated SolarEdge as a Sell, this week saw Goldman raise its rating to an Outright Buy. In a note to clients, they said SolarEdge “represents a unique recovery story that, in our view, could be poised to benefit from a ‘shrink to grow’ strategy beginning in 2025.”

Along with their bullish outlook for the stock, new Target price is $19 will Investors are certainly excited. Considering that SolarEdge closed Wednesday’s session below $14, this suggests an upside target of approximately 40%. Not bad for a stock that has already gained a lot in the past month.

Why SolarEdge’s turnaround story can offer big rewards

Of course, when you look at a stock that has lost a lot of its value Over the course of A year that saw the broader market rise to all-time highs, there will always be a high degree of risk. By Goldman king Accepting, this upgrade is “probably a bit early,” however For investors who want to make huge gains, The risk/reward profile here is very attractive. There’s a lot to like about the company’s ongoing restructuring efforts, which look set to return the company to profit in the coming quarters. There is also new leadership at the helm with this announcement Earlier this month Shoki Nair takes over as the new CEO.

It will be a while yet Before SolarEdge returned to trading at the high altitudes it spent most of 2021 and 2022 in, but who doesn’t love a good comeback story? If the stock were to pick a place to start its recovery rally, this is where it would happen, and with Goldman’s bullish outlook, I’m not sure you want to bet against SolarEdge for much longer.

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