Buy Solaredge shares for a 50% return in 12 months: Bank of America

Solaredge Technologies Inc (NASDAQ: SEDG) has been rather dull since the start of this year but a Bank of America analyst is convinced the story moving forward will be a different one.

Solaredge shares have upside to $396

On Friday, Julien Dumoulin-Smith recommended investing in the solar stock and raised his price target to $396 that suggests about a 50% upside from here.

The analyst is bullish on Solaredge shares particularly for the company’s business in Europe. His research note reads:

Last month, the Nasdaq-listed firm reported its financial results for the first quarter that handily topped Street estimates.

Solaredge could report a strong Q2

Julien Dumoulin-Smith expects the renewable energy company to come in at the top end of its guidance for revenue in the second quarter.

He acknowledged that investors have been concerned about future growth in Europe following a hit to polysilicon prices but said:

The BofA analyst is constructive on Solaredge shares also because they are currently trading at a deep discount. On Friday, B Riley Securities also reiterated its “buy” rating on the stock that’s currently down more than 20% versus its year-to-date high.