Why Morgan Stanley Likes SolarEdge Technologies

SolarEdge Technologies Inc.’s SEDG leadership position will allow it to continue gaining a share in the fast-growing global solar photovoltaic (PV) inverter market and penetrate other “equally exciting” markets, according to Morgan Stanley.

The SolarEdge Technologies Analyst: Stephen Byrd initiated coverage of SolarEdge Technologies with an Overweight rating and a price target of $354.

The SolarEdge Technologies Thesis: The company is a leader in the global solar PV inverter market and has forayed into the storage, electro-mobility (electrical vehicles), and energy management markets, Byrd said in the note.

All these markets are “key beneficiaries of global decarbonization,” the analyst noted, while adding that SolarEdge Technologies exists in a space that has “strong long-term barriers to entry.”

Byrd further said that the bullish rating reflected “a wide economic moat in the global solar space that will continue to drive strong growth at healthy margins,” a sizable total addressable market, strong cash generation and “multiple expansion on the back of a strong growth and margin profile.”

SEDG Price Action: Shares of SolarEdge Technologies had risen by 4% to $309.49 at the time of publication Thursday.

(photo: SolarEdge Technologies)