SolarEdge, Enphase win Buy ratings at HSBC, take top spots on S&P leaderboard
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Solar Edge Technologies (NASDAQ:SEDG) and Enphase Energy (NASDAQ:ENPH) are ranked no. 1 and 2 on Thursday's S&P leaderboard, +7.9% and +7.6% respectively, as both stocks were initiated with Buy ratings with $271 and $418 price targets at HSBC Securities.
SolarEdge's (SEDG) is the world's largest provider of module level power electronics, whose market share in the U.S. distributed generation solar market has grown from zero to nearly 100% in the past decade.
SolarEdge (SEDG) is one of the leaders in the U.S. market, and HSBC expects Europe will be the next growth driver, where MLPE adoption should increase from 24% in 2021 to 50% by 2025; Europe's is SolarEdge's home market, and the company's shipments in Europe will grow at an estimated 20% compound annual growth rate during 2022-25.
Enphase (ENPH) boasts an 86% global market share in microinverters and dominates the U.S. solar residential market, and is gaining ground in the booming energy system storage business.
HSBC sees Europe as Enphase's (ENPH) next growth market, where the company's shipments likely will quadruple during 2022-25 with market share doubling to 25%.
Also on Thursday, Deutsche Bank named Enphase (ENPH) as its top pick among solar stocks, initiating a Short-Term Catalyst Buy rating ahead of Q1 results.