SolarEdge Technologies (SEDG) Gets a Buy Rating from Oppenheimer

By Ryan Adsit

Oppenheimer analyst Colin Rusch maintained a Buy rating on SolarEdge Technologies (SEDGResearch Report) today and set a price target of $66. The company’s shares closed yesterday at $43.88.

Rusch wrote:

“SEDG posted 1Q19 results and 2Q19 guidance ahead of Street expectations noting strong demand dynamics in the US and growth from the EU in 2Q19. We believe some investors have expected SEDG to lose share to ENPH, but we believe both ENPH and SEDG are taking share from string/central inverter suppliers given numerous functionality requirements, including rapid shutdown and AC coupling. Meanwhile, we believe a replacement cycle has begun on existing systems that are 8+ years old that many investors do not fully appreciate. While we remain cautious on SEDG’s acquisition and ramp of battery cell capacity, we believe its solar business continues to reduce manufacturing cost, allowing SEDG to open up incremental markets while benefiting from a larger opportunity than some investors appreciate.”

According to TipRanks.com, Rusch is a 5-star analyst with an average return of 12.7% and a 51.8% success rate. Rusch covers the Industrial Goods sector, focusing on stocks such as Canadian Solar Inc, Fuelcell Energy, and SunPower Corp.

Currently, the analyst consensus on SolarEdge Technologies is a Strong Buy with an average price target of $54.80, which is a 24.9% upside from current levels. In a report issued on April 30, J.P. Morgan also reiterated a Buy rating on the stock with a $53 price target.

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SolarEdge Technologies’ market cap is currently $2.02B and has a P/E ratio of 16.34. The company has a Price to Book ratio of 3.59.

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SolarEdge Technologies, Inc. engages in the operation of inverter solution for the harvesting and managing of photovoltaic solar power. The company’s products include power optimizer, inverter and monitoring portal. It offers residential solutions, commercial solutions, and grid services.