UBS upgrades SolarEdge to Buy on U.S. inverter opportunity

UBS upgraded SolarEdge to Buy and raised its price target to $42 from $36.
The firm sees $SEDG as a major beneficiary of new U.S. restrictions on foreign-produced power inverters, which could create a supply-constrained domestic market and give SolarEdge both market-share gains and greater pricing power.
UBS raised its 2027 and 2028 adjusted EBITDA estimates to $110M and $190M respectively.
With SolarEdge already manufacturing in Florida, Texas and Utah, UBS believes the company is well positioned to benefit as restrictions reshape more than half of the U.S. inverter market.