There’s a lot to be optimistic about in the Consumer Goods sector as 2 analysts just weighed in on Methode Electronics (NYSE: MEI) and SolarEdge Technologies (NASDAQ: SEDG) with bullish sentiments.
Methode Electronics (NYSE: MEI)
In a report released today, Christopher Van Horn from B.Riley FBR reiterated a Buy rating on Methode Electronics (NYSE: MEI), with a price target of $49. The company’s shares opened today at $43.70.
Van Horn wrote:
“Methode Electronics (MEI) is expected to report F4Q18 results on the market open. Our revenue expectations are a bit lower than consensus but our earnings expectations are in line. We note that production levels for GM K2xx appeared to be around flat F4Q18, accelerating from Y/Y declines in the two prior fiscal quarters. This is a big revenue source for Methode and could move the needle on the top line—note that we estimated organic auto revenue would be down slightly in F4Q18. Still, we anticipate more investor focus on the FY19 guidance than on the F4Q18 print. In the past, management has taken a conservative approach to guidance, but typically has been able to meet or beat their expectations.”
According to TipRanks.com, Horn is a 4-star analyst with an average return of 8.5% and a 59.4% success rate. Horn covers the Industrial Goods sector, focusing on stocks such as Superior Industries International, Park-Ohio Holdings, and American Axle.
Methode Electronics has an analyst consensus of Hold.
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SolarEdge Technologies (NASDAQ: SEDG)
B.Riley FBR analyst Carter Driscoll maintained a Buy rating on SolarEdge Technologies (NASDAQ: SEDG) yesterday and set a price target of $69. The company’s shares opened today at $46.85.
Driscoll observed:
“We believe solar investors have been concerned with Huawei’s launch of a residential optimizer over the past few months, specifically about Huawei potentially undercutting its competitors such as SEDG and Enphase on price and not having the same level of functionality. Filed in the Regional Court of Mannheim in Germany, the lawsuit alleges Huawei’s unauthorized use of SEDG’s patented technology. In our view, it makes sense that SEDG filed the lawsuit in Germany because Huawei debuted its inverters in Europe, primarily in Germany. Essentially, SEDG is seeking intellectual property protection surrounding its innovative DC-optimized inverter technology.”
According to TipRanks.com, Driscoll has currently no stars on a ranking scale of 0-5 stars, with an average return of -7.9% and a 33.7% success rate. Driscoll covers the Consumer Goods sector, focusing on stocks such as Enphase Energy, Plug Power, and Aemetis.
SolarEdge Technologies has an analyst consensus of Moderate Buy, with a price target consensus of $61.
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