Analysts have been eager to weigh in on the Consumer Goods sector with new ratings on SolarEdge Technologies (NASDAQ:SEDG), Acacia Communications (NASDAQ:ACIA) and Axcelis Technologies (NASDAQ:ACLS).
SolarEdge Technologies (SEDG)
In a report released today, Carter Driscoll from B.Riley FBR maintained a Buy rating on SolarEdge Technologies, with a price target of $60. The company’s shares opened today at $37.75.
Driscoll noted:
“Solid 4Q guidance but some NT margin pressure. SolarEdge (SEDG—BUY , $60 PT) reported record 3Q18 revenue of $236.1M (up 42% in line with guidance ($230M- $240M) and our $233.7M estimate, while delivering gross margin at 33.0% below guidance (36%-38%), and our 36.1% forecast. We believe SEDG took incremental market share across most geographies with gains in the C&I segment. SEDG began to spend some of its cash hoard ($9.11/sh. before its Kokam acquisition with $34.0M in 3Q18 CFO), purchasing a battery OEM to deliver a more complete solar solution with rising storage attach rates. This follows SEDG’s other lateral expansion via acquisition into the UPS market in 2Q18.”
According to TipRanks.com, Driscoll has currently no stars on a ranking scale of 0-5 stars, with an average return of -8.8% and a 32.0% success rate. Driscoll covers the Industrial Goods sector, focusing on stocks such as Ballard Power Systems, Amer Superconductor, and Canadian Solar Inc.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for SolarEdge Technologies with a $54.40 average price target, implying a 44.1% upside from current levels. In a report released today, J.P. Morgan also maintained a Buy rating on the stock with a $59 price target.
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Acacia Communications (ACIA)
B.Riley FBR analyst Dave Kang maintained a Buy rating on Acacia Communications today and set a price target of $45. The company’s shares opened today at $44.75, close to its 52-week high of $45.31.
Kang commented:
“Acacia Communications’ (ACIA) reported strong 3Q results driven by the ramp of new products/ customers and the bounce back of ZTE (763-HKG) as a key customer. 3Q sales/EPS were $94.8M/ $0.42, above consensus of $90.0M/$0.17. Strong sales from higher margin products such as the CFP2 DCO (Digital Coherent Optics) drove GM to expand from 38.3% to 46.7% in 2Q, with anticipated further GM expansion into the high 40s in 2019. As such, despite an increase in opex, we expect OM to improve from 7.7% in 2018 to 15.3% in 2019. In the past, customer concentration has been an issue, however, the company has managed to diversify the customer base, with four 10% customers during the quarter, including a major switch/router company.”
According to TipRanks.com, Kang is a 5-star analyst with an average return of 18.2% and a 62.9% success rate. Kang covers the Consumer Goods sector, focusing on stocks such as Applied Optoelectronics, Lumentum Holdings, and Viavi Solutions.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Acacia Communications with a $43.85 average price target, representing a -2.0% downside. In a report released today, Piper Jaffray also maintained a Buy rating on the stock with a $47 price target.
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Axcelis Technologies (ACLS)
B.Riley FBR analyst Craig Ellis maintained a Hold rating on Axcelis Technologies today and set a price target of $18. The company’s shares opened today at $18.08, close to its 52-week low of $15.72.
Ellis observed:
“Axcelis (ACLS), the ion implant specialist, reported 3Q18 results and 4Q18 guidance which undershot Street estimates as we, and we believe the Street, had feared. Shares were indicated meaningfully lower following Thursday’s surge. Overall, we observed both positives and negatives, but retain a neutral stance, believing Memory spending risks persist well into 2Q19. Services revenue performed well, and gross margins outperformed as a slew of self-help initiatives bear fruit. Alternatively, Memory undershot our expectations and is tracking to a -66.0% H/H decline, 2.5x that of larger-cap LRCX, pressuring operating margins, EPS and cash generation.”
According to TipRanks.com, Ellis is a top 25 analyst with an average return of 25.3% and a 64.3% success rate. Ellis covers the Consumer Goods sector, focusing on stocks such as Sequans Communications S A, Rudolph Technologies, and Silicon Laboratories.
Currently, the analyst consensus on Axcelis Technologies is a Moderate Buy with an average price target of $23.33, a 29.1% upside from current levels. In a report released today, Benchmark Co. also downgraded the stock to Hold.
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