SolarEdge (NASDAQ: SEDG) inventory noticed robust bullish momentum on this week’s buying and selling. The inventory gained 7.7% throughout the interval and had been up as a lot as 18.4% earlier than a bearish flip for the broader market precipitated a retracement. The S&P 500 index closed out the week down 1.7%, and the Nasdaq Composite was down 2.3%.
SolarEdge’s valuation rose following the corporate’s fourth-quarter earnings launch, which arrived with higher-than-expected gross sales. The inventory additionally bought a lift from bullish protection from analysts following the This autumn report.
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SolarEdge inventory soars on This autumn gross sales beat and free-cash-flow shock
Photo voltaic Edge reported a non-GAAP (adjusted) loss per share of $3.52 on income of $196.2 million within the quarter. Gross sales efficiency got here in roughly $7 million higher than the typical Wall Avenue analyst estimate had forecasted, however the firm’s adjusted loss per share was $1.86 larger than the forecast.
Income was down 17% yr over yr within the interval, however the enterprise managed to publish $26 million in free money movement — far exceeding the market’s expectations. SolarEdge additionally mentioned it anticipates posting optimistic free money movement this yr, and buyers responded by pouring into the inventory.
Analysts elevate worth targets after SolarEdge’s This autumn report
Following the This autumn report, SolarEdge inventory noticed a variety of analyst price target will increase. Of the key Wall Avenue analyst corporations to weigh in on the inventory after earnings, UBS was probably the most upbeat, with analyst Jon Windham elevating the agency’s one-year worth goal from $18 per share to $22 per share.
The analyst cited some favorable demand indicators and cost-cutting initiatives as causes for the goal hike. Alternatively, UBS nonetheless maintained a impartial score on the inventory, and Windham pointed to lingering stock glut in Europe and Tesla‘s market share features in California as near-term challenges.
Regardless of the pop this week, SolarEdge inventory continues to be down roughly 76% during the last yr of buying and selling. For the primary quarter, the corporate is guiding for gross sales to return in between $195 million and $215 million, with the midpoint of the steerage vary suggesting sequential quarterly gross sales development of roughly 4.5%. Whereas it is unclear but whether or not demand has really bottomed, the inventory might see substantial features if the corporate can string collectively extra quarters delivering sequential development.
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Keith Noonan has no place in any of the shares talked about. The Motley Idiot has positions in and recommends Tesla. The Motley Idiot has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.
