Vertical Group analyst Gordon Johnson believes President Trump's second set of proposed tariffs on China include SolarEdge Technologies' (SEDG) power optimizers. This is bad for SolarEdge and not fully understood at present, Johnson tells investors in an emailed research note. The analyst thinks this introduces a "much more/immediate draconian risk" that could materially impact SolarEdge's sale of inverters into the U.S. market. A number of investors currently in the stock are not aware that SolarEdge outsources the production of its inverters/optimizers to Jabil Circuit (JBL), which are made mostly in China, Johnson contends. He keeps a Sell rating on SolarEdge shares with a $29 price target. The stock in midday trading is up 2% to $48.75.

B. Riley lowered the firm's price target on SolarEdge to $124 from $133 and keeps a Buy rating on the shares ahead of the Q1 report. With high interest rates and channel dynamics impacting the solar industry, resulting in uncertainty and low visibility around growth, B. Riley continues to advocate for solar/storage ownership models, the analyst tells investors in a research note. The firm views Altus Power (AMPS) and HASI (HASI) as its top ideas for the rest of 2024. These are the best two ways to play the space and have higher growth visibility in a challenging macro environment, the analyst tells investors in a research note.