Wall Street analysts positive on SolarEdge Technologies following earnings beat

SolarEdge Technologies (NASDAQ:) shares jumped more than 8% Thursday on the back of its latest earnings release, which saw it beat top and bottom line estimates.

The company reported Q1 of $2.90, $0.96 better than the analyst estimate of $1.94, while revenue for the quarter came in at $943.9 million versus the consensus estimate of $932.83 million.

Shares of SolarEdge are currently trading at just under $287.

Reacting to the report, BMO Capital analysts raised the firm’s price target on the stock to $395 from $370, maintaining an Outperform rating on the stock. They said the company is “well-positioned.”

“SEDG is starting off 2023 on much stronger footing compared to last year. Company’s large international footprint, customer segment diversification, and cost tailwinds (better FX rates and lower shipping costs) all on display during its 1Q earnings call,” analysts wrote. “1Q gross and operating margins are now up nearly 600 bps and 700 bps, respectively, from 2022 lows as the company is back on track with its LT financial targets at a much faster pace than most expected. Second quarter guidance implies even more sequential improvement.”

At Morgan Stanley, analysts said SEDG’s results were driven by continued momentum in Europe.

“SEDG reported $944m of revenue in 1Q, +1% above consensus of $934m, and slightly below the top end of its guidance range of $915m-$945m. The solar segment generated $908.5m (vs. the guided range of $875-$905m and MSe of $888.8m). Strong 1Q solar segment results was driven by 102% Y/Y revenue growth in Europe, partially offset by a 4% Y/Y decrease in the US,” wrote analysts.

Elsewhere on Thursday, JPMorgan, Oppenheimer, BMO Capital, and Goldman Sachs all raised their price targets on SEDG shares.