Buy SIgnal on Solaredge Technologies (SEDG-US)
Our system also triggered an Enter Long Tactical signal on February 25, 2022 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 $16.8 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 market in 2021 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 2021.
Solaredge published in 2021 sales of $1.96 billion (+34% y/y) coupled with an operating margin of 10.5%, leading to EPS growth of 15%. For 2022, the company is expected to report revenues of $ 2.83 Bn (+44%), an operating margin of 11.5% (+100 bp) and a 60% increase in EPS. Growth should remain very strong over the next 3 years.
The Russian-Ukrainian conflict and the rise in energy prices represent a strong catalyst for the energy transition, which benefits solar players such as SolarEdge.
Short term catalyst : rising energy prices.
This signal looks consistent with the current strengthening momentum in US renewable techs of which participation to tactical signals reach 50% (but still only 6% in Strategic signal).