SolarEdge Technologies (SEDG) - Get Report jumped more than 10% Wednesday after analysts at Cascend Securities raised the price target on the solar panel maker's shares by 17% ahead of its earnings release after the closing bell Wednesday.
Analyst Eric Rose raised his price target to $140 from $120; shares of SolarEdge were up 13.5% to $123.10 in trading Wednesday. The stock has been on a tear in 2020, rising 28.1% year to date before Wednesday’s double-digit gains.
While Rose was focused on SolarEdge’s price target, the analyst is bullish on the entire solar storage sector as “storage is gathering real momentum across all makers - starting to become standard.”
Rose said that Tesla’s (TSLA) - Get Report home battery Powerwall has made solar power “sexy” leading to an increase in consumers wanting solar storage products. Rose's data showed that inverter pricing continued its growth from 2019 with pricing reflecting “strong demand combined with nicely balanced supply.”
Analysts are expecting SolarEdge to report earnings of $1.25 a share on revenue of $413.78 million. Last year, the company missed estimates after reporting earnings of 63 cents a share vs. expectations of 70 cents.
Meanwhile, fellow solar panel maker Enphase (ENPH) - Get Report rose nearly 40% after the company issued first-quarter revenue guidance between $200 million and $210 million, ahead of analysts' estimates of $172 million.
Enphase has had a meteoric rise over the past 12 months, rising 400% since February 2019. Year to date, the stock has more than doubled.