SolarEdge stock should be worth $375: Deutsche Bank analyst
- Deutsche Bank analyst upgraded SolarEdge Technologies to "buy" today.
- Corinne Blanchard turned bullish after the company's promising Q1 results.
- SolarEdge stock is currently flat versus the start of the year 2023.
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SolarEdge Technologies Inc (NASDAQ: SEDG) is currently about flat for the year but the path forward for this stock will be way more positive, says Corinne Blanchard – a Deutsche Bank analyst.
SolarEdge stock has a 33% upside
On Friday, Blanchard upgraded the solar stock to “buy” and raises her price objective to $375 that suggests a 33% upside on its previous close.
Her bullish call on SolarEdge stock arrives only days after the company reported market-beating results for its first financial quarter.
The California-based company that makes solar inverters confirmed that signs of improvement in supply chain were evident in its Q1. Blanchard’s note reads:
We are increasingly constructive on the name, given previous concerns around cost control, better geographic localisation of its supply chain and margin pressure have faded away.
Other notable catalysts for SolarEdge shares
Corinne Blanchard is convinced that SolarEdge Technologies will continue to improve its margins moving forward. She wrote:
The Q2 guide demonstrates company’s ability to maintain and potentially further improve its gross margin profile, with management commentary sounding solid around the coming quarters.
The Nasdaq-listed firm sees about a 36% growth in its revenue in the current quarter. Blanchard also expects the Inflation Reduction Act to be a meaningful tailwind for the clean energy companies like “SEDG”.
Lastly, the Deutsche Bank analyst likes SolarEdge stock for the diversified business that caters to both commercial and residential clients as well as the company’s exposure to global markets.
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