SolarEdge Technologies is in better shape after its sale this year and may grow by more than 50%, according to Bank of America. Analyst Julien Dumoulin-Smith raised his price target on the stock and reiterated a buy rating, saying SolarEdge is in a “healthy” position. “The Street expects a roughly flat year 2023 for US resi, which is consistent with communications from SEDG mgmt., but coming out of Intersolar Munich (renewable energy industry conference), investors are weary of the European growth story, following the collapse in polysilicon prices,” Dumoulin-Smith wrote on Friday. “We argue that these concerns seem misplaced and point to an acceleration in EBITDA in 2H23, driven by compound operating leverage and other C&I and storage deployments,” Dumoulin-Smith added. SEDG 1D mountain SolarEdge Technologies shares 1-day SolarEdge underperforms this year, down more up 10%, while the S&P 500 is up 14%.However, the analyst raised his price target to $396 from $379, implying the stock may jump 55% from the close Shares were up more than 1% in premarket Friday trading. In fact, the analyst expects SolarEdge to hit the top of its second-quarter revenue forecast, and cited the company’s continued strength in Europe. “Despite lofty growth targets, we remain confident in SEDG’s ability to compete in these markets, given its technology value proposition and 5-10 year track record,” Dumoulin-Smith wrote. “SEDG reiterated its strong growth outlook for Grids and C&I across Europe, and we expect continued growth, as SEDG unlocks its three-phase inverter capacity for storage applications (critical for the German market and C&I storage deployments).” — CNBC’s Michael Bloom contributed to this report.
This solar stock has a ‘healthy’ setup and can rise more than 50%, Bank of America says
