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SolarEdge Technologies

was falling Tuesday after a downgrade to Equal-Weight from Overweight by Morgan Stanley analysts who struggle to see any material price upside in the stock after the solar-equipment maker’s year-to-date performance.

The stock was down 5.2% on Tuesday to $328.92.

SolarEdge (ticker: SEDG) has beaten the MAC Global Solar Energy Index by roughly 20% year to date, according to Morgan Stanley’s Stephen C Byrd.

“We now see a more balanced risk-reward,” Byrd said.

The index is made up of solar technology businesses and companies active across the solar energy value chain. Its net total return down is down 11.64% year to date, according to S&P Global data. SolarEdge stock has gained 2.64% year to date.

Byrd downgraded the stock as the analyst said he struggles to “see material price upside in the stock after SEDG outperformed” the index.

However, the analyst boosted the price target on the stock to $338 to reflect the strong growth of the company, getting “somewhat in-line where the stock is currently trading,” Byrd said in a note.

Analysts surveyed by FactSet, on average, rate the stock as Overweight with a price target of $355.35.

“SEDG’s core product (solar PV inverters + power optimizers) offers a strong value proposition that we believe should allow the company to continue to gain market share in the fast growing solar market and to penetrate the battery storage space,” Byrd said in the note.

In its recent earnings report, Israel-based SolarEdge said it ended the third quarter with a record backlog of orders. It posted $526.4 million in sales in the period, a quarterly record for the company.

SolareEdge said it expects revenue to be within the range of $530 million to $560 million.

The company manufactures technology enhanced inventors, which are used to transfer power from solar panels to electricity grids.

Write to Karishma Vanjani at karishma.vanjani@dowjones.com

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