SolarEdge Technologies gave analysts plenty to smile about in its fourth-quarter earnings report. But it seems investors aren’t as happy.
Guggenheim analyst Joseph Osha reiterated his Buy rating on the stock and raised his price target to $452 from $409. “Improving margins, good growth, attractive valuation—what’s not to like?” he wrote in a research note Tuesday, in which he also highlighted the company’s strong quarterly performance.
(ticker: SEDG), the maker of solar panels and inverters, posted fourth-quarter revenue of about $891 million and diluted earnings per share of $2.86, while analysts had expected about $880 million and earnings of $1.54 a share, according to FactSet.
Though the company posted strong numbers, the stock was sliding 4.8% to $295.80 early Tuesday.
J.P. Morgan analyst Mark Strouse was also optimistic on the company, maintaining his Overweight rating and increasing his price target on the stock to $361 from $358.
“SEDG is one of the few solar stocks that is consistently profitable, generates cash, and has a solid balance sheet,” Strouse wrote. “We believe further penetration of the global solar market and expansion into new verticals should allow the stock to outperform our solar coverage.”
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