[ad_1]
SolarEdge Technologies is in a better spot after its selloff this year, and can surge more than 50%, Bank of America says. Analyst Julien Dumoulin-Smith hiked his price target on the stock and reiterated a buy rating, saying SolarEdge is in a “healthy” position. “The Street expects a roughly flat 2023 for US resi, which is consistent with communications from SEDG mgmt., but coming out of Intersolar Munich (renewable industry conference), investors are weary of the European growth story, following the collapse in polysilicon prices,” Dumoulin-Smith wrote on Friday. “We argue these concerns seem misplaced, and point to EBITDA acceleration in 2H23, driven by compounding operating leverage and further C & I and storage deployments,” Dumoulin-Smith added. SEDG 1D mountain SolarEdge Technologies shares 1-day SolarEdge is underperforming this year, down by more than 10%, while the S & P 500 is higher by 14%. However, the analyst hiked his price objective to $396 from $379, implying shares can surge 55% from Thursday’s close. Shares rose more than 1% in Friday premarket trading. In fact, the analyst expects that SolarEdge could deliver at the top end of its second-quarter revenue guidance, and cited continued the firm’s strength in Europe. “Despite lofty growth targets, we remain confident in SEDG’s ability to compete in these markets, given its technological value proposition and 5-10 year track record,” Dumoulin-Smith wrote. “SEDG reiterated its strong growth outlook for resi and C & I across Europe, and we look for continued growth, as SEDG de-bottlenecks its three-phase inverter capacity for storage applications (critical for German market and C & I storage deployments).” —CNBC’s Michael Bloom contributed to this report.
[ad_2]
Original Source Link
