Oppenheimer Believes SolarEdge Technologies (NASDAQ: SEDG) Won’t Stop Here

By Ryan Adsit

Oppenheimer analyst Colin Rusch maintained a Buy rating on SolarEdge Technologies (NASDAQ: SEDG) today and set a price target of $50. The company’s shares closed yesterday at $36.90, close to its 52-week high of $39.90.

Rusch observed:

“SEDG posted top- and bottom-line upside for 4Q:17 while guiding materially above consensus for 1Q:18. SEDG continues to increase GM higher while taking share. While Huawei is beginning to ship small volumes of product, SEDG’s improving GM indicates it is executing ahead of cost reduction expectations and competing effectively both on cost and performance metrics. We believe share gains are largely at the expense of established European inverter OEMs that have under-invested in product development. We expect these gains to continue at least through 2H:18 and expect SEDG’s growing diversity of offerings to help drive revenue. We raise estimates accordingly and remain constructive on shares as we raise our PT to $50 (from $38) based on 18x 2018E EPS of $2.80 (from $2.13).”

According to TipRanks.com, Rusch is a 4-star analyst with an average return of 5.7% and a 47.5% success rate. Rusch covers the Industrial Goods sector, focusing on stocks such as Capstone Turbine Corp, Amer Superconductor, and Canadian Solar Inc.

Currently, the analyst consensus on SolarEdge Technologies is Moderate Buy and the average price target is $50, representing a 35.5% upside.

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

SolarEdge Technologies’ market cap is currently $1.58B and has a P/E ratio of 22.10. The company has a book value ratio of 4.2810.

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.