Buy Signal on SolarEdge Technologies (SEDG-US)
Our system also triggered an Enter Long Tactical signal on October 12, 2021 that imply a likely bullish acceleration. Solaredge has a rather solid track record, with a Behavioral score of 6/10, therefore the bullish signal is to be considered as Strategic.
Solaredge is a $15.7 Bn market cap, which offers an inverter solution for solar photovoltaic (PV) systems. The Company's products include SolarEdge Power Optimizer, SolarEdge Inverter, StorEdge Solutions and SolarEdge Monitoring Software. Its product roadmap consists of categories, including power optimizers, inverters, monitoring services, energy storage and smart energy management. The Company's power optimizers provide module-level maximum power point (MPP) tracking and real-time adjustments of current and voltage to the optimal working point of each individual PV module. The Company's solution consists of a direct current (DC) power optimizer, an inverter and a cloud-based monitoring platform that operates as a single integrated system.
SEDG entered residential solar storage with 10kWh SolarEdge Energy Bank to ship 3Q21 with rapid ramp up expected.
As other Solar companies, SolarEdge gross margins have been impacted by component supply shortages. However its multisource strategy installed several years ago has enable it to meet demand in Q2.
Solaredge posted an impressive Q2 beat and raised guidances including EPS of $1.28 versus FactSet consensus at $0.89, record revenues of $480mm, 5% above consensus and gross margin of 33.9% near high-end of 32-34% guide despite supply chain. For 2021, Solaredge is expected to post a $ 1.97 Bn revenue (+35% yoy) coupled with a $195mn net profit (+40%). EPS growth is expected to accelerate again in 2022 (+50%).
SolarEdge is expected to release its Q3-21 on November 2.
Short term catalyst :Component shortages, Q3 release.
This signal looks consistent with the current strengthening momentum in renewable techs of which participation to tactical signals reach 75% (but still only 25% in Strategic signal).