Northland Capital downgraded SolarEdge Technologies (NASDAQ:SEDG) from Outperform to Market Perform, trimming its outlook following a strong run in the stock since its prior upgrade in late April. The firm set a new price target of $15.50.

The downgrade reflects concerns that recent share gains have outpaced the company’s near-term fundamentals, especially as SolarEdge continues its turnaround in a challenging macro environment.

Analysts pointed to lingering uncertainties around U.S. clean energy tax credit policies—specifically the transferability of 45X credits—and unresolved questions about future tariff structures. While tariff-related risks from China have eased somewhat, Northland noted they still persist. The firm now assumes more moderate tariffs near 30% (plus or minus 10%), versus prior fears of rates as high as 145%.

With the valuation now seen as full relative to the company’s operational and regulatory backdrop, Northland is taking a more neutral stance until greater clarity emerges.