Solaredge Technologies Inc shares rose 5% to $265.50 in late-morning trading on Friday after Bank of America analysts upgraded the stock to ‘Buy’ from ‘Neutral’ while increasing their target price to $367 per share from $269, implying more than 55% upside from current levels.
The analysts noted that the company's favorable strategic positioning has become a near-term tailwind with a substantially improved outlook.
“SolarEdge (SEDG) offers attractive exposure to critical end markets with leading positions across diversified markets, with clear visibility into gross margin and operating margin expansion in the near- and medium-term, which drives earnings growth,” they wrote.
Earlier in the week, analysts at Cowen raised their target price on SolarEdge to $360 per share, stating that the company is “well positioned to benefit from secular solar demand driven by policy and higher electricity rates.”
SolarEdge develops an “intelligent” inverter solution that changed the way power is harvested and managed in solar photovoltaic (PV) systems, according to the company.
Shares of Solaredge Technologies have fallen about 7% year to date.
Contact Sean at sean@proactiveinvestors.com