on Oct. 20, the lowest level since April 2020.
At present, the reason for the sharp fall is related to a news disclosed by the company in the morning, which pointed out that the demand for solar products in the European market has weakened , and the company 's third quarter results may not be as good as expected .
By the end of the day, SolarEdge's cumulative decline in the year had expanded to 70%, and its total market value had evaporated 113
. SolarEdge is an Israel-based manufacturer of photovoltaic array power optimizers and photovoltaic inverters , which are the core components of solar photovoltaic systems.
The company had previously said that the downward revision of its guidance was not related to the Israeli-Palestinian conflict and that its production was not affected.
However, according to media reports, SolarEdge's latest estimates for revenue and gross profit in the third quarter of 2023 will be lower than previous guidance range.
In addition, with the de-inventory strategy, the company expects a sharp decline in revenue in the fourth quarter.
The comments were confirmed by Zvi Lando, CEO of SolarEdge.
Zvi Lando said that in the second and third quarters of this year, SolarEdge's European distributors suffered a large number of unexpected order cancellations and delays, which the company attributed to higher-than-expected channel inventory and lower-than-expected installation rates.
Affected by this, Goldman Sachs, Deutsche Bank, Citigroup, Wells Fargo and other institutions have lowered their target prices for SolarEdge shares, with Goldman Sachs directly downgrading its rating from "buy" to "neutral".
Goldman Sachs analyst Brian Lee wrote that the weak demand environment in Europe poses a problem for SolarEdge, and it may not be just a seasonal problem.
Data show that since the beginning of this year, the price of photovoltaic modules in Europe has repeatedly hit new lows, with a cumulative decline of more than 25% up to now.
According to media reports at the end of September, the price of local solar modules in Europe has fallen again in the past four weeks. By wholesale standards, the increase is quite large. Standard components are currently trading wholesale at an average of 20 cents/W – that's another 9% below last month's price. The price of more powerful components with the latest battery technology has even dropped 9.
They can now be purchased wholesale at an average price of 28 cents/W. The price has reached a record low since 2020 . Details can be found in " But this may not be the end, according to a report in Photovoltaics magazine in early October, from mid-July to the end of August. The number of unsold components in European warehouses may have more than doubled and could reach 100G W by year-end.
As the price of components falls, the backlog of components in European warehouses is depreciating. Local distributors are mostly looking to clear inventory before these 'old' components lose too much value, and also make room for the new generation of N-type components, which are in greater demand and are quickly becoming more price-competitive than PERC.
Based on this situation, the price gap of component products of different local manufacturers in Europe has widened recently, mainly due to different strategic choices.
While some manufacturers have chosen to reduce production in the face of oversupply and falling prices, others have chosen a completely different strategy based on their own interests. Click on " However, such a strategy may lead to a European < a href="https://www.databm.
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