SolarEdge shares dip 4.3% after Deutsche Bank call

SolarEdge shares fell 4.3% in the afternoon session after Deutsche Bank issued a short-term tactical call, warning that consensus expectations for core revenue growth are overly optimistic, as reported by StreetInsider. The bank warned that the company's recovery may stumble because borrowing costs in the United States remain elevated, and that persistent high interest rates continue to depress overall demand across the solar market. A tactical call represents an analyst's short-term expectation for share price performance rather than a change to a long-term investment rating.

After the initial drop, the shares shed some of the losses and rose to $32.71, down 3.8% from the previous close. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy SolarEdge? Access our full analysis report here, it’s free.

SolarEdge’s shares are extremely volatile and have had 91 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 5 days ago when the stock gained 6.9% on the news that weaker-than-expected U.S. employment data cooled Treasury yields, easing borrowing-cost pressure across the sector. The Bureau of Labor Statistics reported that nonfarm payrolls rose by 29,000 in September, falling far short of the 84,000 projected by economists polled by Dow Jones.

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