SolarEdge Stock Looks Well-Positioned For A Comeback

Summary:

  • SolarEdge’s revenue has stabilized, with multiple positive catalysts including normalized U.S. inventories, rebounding European demand, and rising U.S. electricity prices.
  • The valuation of SEDG stock is low, and despite some risks facing the company, the balance sheet situation is manageable, making it a buy for risk-tolerant, long-term investors.
  • SolarEdge’s Q2 revenue increased sequentially, driven by strong U.S. residential market sales and improved commercial sales, despite a year-over-year decline.
  • Lower interest rates and growing solar installations in the U.S. and Europe, along with rising electricity prices, are expected to benefit SolarEdge significantly.

Abstract aerial/drone view over a field of solar panels at sunrise

Justin Paget

SolarEdge’s (NASDAQ:SEDG) revenue appears to have at least stabilized. Meanwhile, the firm should benefit from multiple, positive catalysts in the medium-to-long term, including the normalization of inventories in the U.S., rebounding demand in Europe, lower interest rates, strong demand for solar energy


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