Oppenheimer increased the price target on SolarEdge’s stock to $207 (5.5% upside potential) from $151 and reiterated a Buy rating after the solar inverter and optimizer manufacturer reported strong 2Q results.
Oppenheimer analyst Colin Rusch noted that SolarEdge (SEDG), “posted in-line Q2 revenue with gross margin slightly ahead of expectations, while guiding revenue for Q3 in line, with gross margin at the midpoint 100bps ahead of the Street estimate.”
He added that “incremental growth and operating leverage are not fully integrated into shares at current levels” given the strong delivery scheduled for 4Q and product ramp-up in 2021.
On August 3, SolarEdge reported that adjusted EPS grew 39.8% to $0.97 year-on-year, beating analysts’ expectations of $0.69. Revenues increased 3.9% to $331.9 million year-over-year, surpassing Street estimates of $319.4 million.
Overall, SEDG has a Moderate Buy analyst consensus. In light of the 106% stock rally year-to-date, the average price target of $170.78 implies downside potential of about 13%. (See SEDG stock analysis on TipRanks).
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