Goldman Sachs Reiterates SolarEdge's (SEDG) 'Neutral' Rating as Q2 Results Impress

SolarEdge Technologies, Inc. (NASDAQ:SEDG) is one of the best alternative energy stocks to buy right now. On August 8, Goldman Sachs reiterated a ‘Neutral’ rating on the stock and a $27 price target. The positive stance follows the company’s second-quarter financial results, which exceeded expectations.

Revenue in the quarter totaled $289.41 million compared to $273.63 million expected. While the company posted an adjusted net loss of $0.81 per share, it was better than the expected loss of $0.85 per share. The better-than-expected results came amid substantial storage volumes and improved gross margins. Additionally, SolarEdge provided guidance that indicated continued sequential growth in revenue and margin expansion. It anticipates Q3 2025 revenues of between $315 million and $355 million, with non-GAAP gross margin ranging from 15% to 19%.

SolarEdge also revised its free cash flow outlook, now expecting positive free cash flow for the year, a significant improvement from the previous breakeven forecast. Nevertheless, Goldman Sachs remains concerned that the company may face challenges in normalizing channel inventories in Europe.

SolarEdge Technologies, Inc. (NASDAQ:SEDG) is a global leader in intelligent energy technology, focusing on the development and supply of a wide range of solar energy solutions. Its core innovation is a DC-optimized inverter solution that maximizes energy production from solar panels. It also offers products such as power optimizers, energy storage solutions, and electric vehicle charging stations.

While we acknowledge the potential of SEDG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: Top 10 Tech Stocks with Strong Return on Equity and 13 Best NYSE Penny Stocks to Invest in Now.

Disclosure: None. This article is originally published at Insider Monkey.