** Jefferies upgrades solar inverter maker SolarEdge Technologies SEDG.O to "hold" from "underperform"

** Shares of the company up 1.3% at $46.24 in premarket trading

** It also raises price target to $49 from $30, representing bto the stock's last close

** "We are tactically upgrading SEDG, as the escalating Middle East conflict is triggering a replay of the European energy security dynamics that 'turbocharged' SEDG's business during the Russia-Ukraine war" - Jefferies

** Expects any demand pickup in Europe to be less dramatic than in 2022–23, given higher renewable penetration and reduced subsidies, but says the outlook nonetheless improves SEDG's earnings profile

** "With the stock now near recent peaks following the Middle East conflict, we believe current valuation adequately reflects the potential demand surge" - Jefferies

** One out of 30 brokerages rates the stock "buy", 24 "hold" and 5 "sell" or lower; their median PT is $36 - data compiled by LSEG

** As of last close, SEDG up 58.3% YTD

(Reporting by Sumit Saha in Bengaluru)

((Sumit.Saha@thomsonreuters.com;))