B.Riley FBR Believes SolarEdge Technologies (NASDAQ: SEDG) Won’t Stop Here

By Austin Angelo

B.Riley FBR analyst Carter Driscoll maintained a Buy rating on SolarEdge Technologies (NASDAQ: SEDG) today and set a price target of $48. The company’s shares closed yesterday at $36.90, close to its 52-week high of $39.90.

Driscoll wrote:

“SolarEdge Technologies, Inc. (SEDG) reported record revenue of $189.3M, ahead of guidance of $175M–$185M and our expectations of $180.6M, while beating on gross margin with a record 37.5%, well above the high end of guidance (33%–35%) and our expectation (34.0%). We believe SEDG took another 1%–2% market share across all regions. The company’s balance sheet strength ($7.15/share in cash and $45.8M in 4Q17 cash from operations) allows it to out-invest its competitors in product development. The U.S. drove strength in 4Q17, but we expect greater contribution from Europe and APAC as 2018 unfolds, as Japan’s C&I market begins to kick in and a rebound after a seasonally weak quarter in Europe. The company’s continued rollout of its HD Wave inverters across its inverter portfolio should keep costs down ahead of ASP declines, and management called out a still fairly stable ASP environment.”

According to TipRanks.com, Driscoll is ranked 0 out of 5 stars with an average return of -7.7% and a 33.3% success rate. Driscoll covers the Industrial Goods sector, focusing on stocks such as Ballard Power Systems, Amer Superconductor, and P10 Industries Inc.

Currently, the analyst consensus on SolarEdge Technologies is Strong Buy and the average price target is $49, representing a 32.8% upside.

In a report released today, Vertical Group also upgraded the stock to Buy.

Based on SolarEdge Technologies’ latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $189 million and quarterly net profit of $19.5 million. In comparison, last year the company earned revenue of $112 million and had a net profit of $9.77 million.

Based on the recent corporate insider activity of 80 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of SEDG in relation to earlier this year.

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SolarEdge Technologies, Inc. engages in the operation of inverter solution for the harvesting and managing of photovoltaic solar power. Its products include power optimizer, inverter and monitoring portal. The company was founded by Guy Sella, Lior Handelsman, Yoav Galin, Meir Adest and Amir Fishelov in 2006 and is headquartered in Hod HaSharon, Israel.