SolarEdge a new Conviction Buy at Goldman on upbeat battery storage outlook
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SolarEdge Technologies (SEDG
-2.2%) is added to the Conviction Buy list at Goldman Sachs, which cites improvements in battery storage capacity and prospects for increasing profit margins in raising its stock price target to $448 from $420.

SolarEdge is "best positioned for upside to consensus estimates on battery storage ramp and improving margin mix," according to the Goldman analyst team led by Brian Lee.
Goldman also views "the recent compression in multiples as unwarranted, particularly given the company's strong execution against ongoing supply chain and logistics challenges and robust demand across solar and energy storage end markets."
The firm also rates Enphase Energy (ENPH
-4.1%) and Stem (STEM
-5.1%) at Buy, citing more upside to battery storage growth, while seeing First Solar (FSLR
-3.5%) as a Sell, with the most risk to consensus estimates and no growth in sales and EPS in 2022.
Also, UBS upgrades SolarEdge to Neutral from Sell with a $280 price target, up from $250, citing the release of the NEM 3.0 decision in California, with the firm's prior negative view reflecting the risk that the decision would weigh on valuations across the residential solar exposed names.
ETF: TAN

"Solar PV is likely to be the leader in all generated power, and SolarEdge is already the absolute leader in PV systems," Kolomeets Investments writes in an analysis published on Seeking Alpha.