SolarEdge Technologies best investment for 2023-Cowen
2022.12.05 10:36
SolarEdge Technologies best investment for 2023-Cowen
Budrigannews.com – SolarEdge Technologies (NASDAQ:) was referred to by Cowen analysts.as one of the company’s best ideas for 2023, maintaining its Outperform rating on the stock and increasing its price target to $360 per share from $309.
According to the analysts, SolarEdge is “well-positioned” to profit from rising electricity prices and policy-driven solar demand.
“We believe that investors undervalue the opportunity for SolarEdge to gain market share in Europe’s rooftop market from Chinese rivals by leveraging its energy hub capabilities to meet consumer demand shifting toward self-consumption.”
SolarEdge’s larger TAM in comparison to Enphase is emphasized because SolarEdge serves both residential and commercial customers.Note:The analysts wrote, “We see multiple expansion as margins improve, and our estimates are largely consistent with consensus.”
“Currently addressing residential and commercial, offering a disruptive inverter technology (HD-Wave) designed to work with SolarEdge’s power optimizers to enable conversion of DC to AC power without magnets at the semiconductor level, resulting in a lighter product and one-person installation,” according to Cowen’s assessment of the company.
The continued ramp of the Mexico facility, the ramp of the Sella 2 battery cell facility in South Korea, and the higher ASP resulting from recent price increases were also mentioned by the analysts as three primary levers for expanding gross margin in the near future.
According to the analysts, “establishing manufacturing capacity in the United States presents opportunity for margin upside through further reduced tariff and freight exposure.”
