SolarEdge Technologies Inc (SEDG) is an Israeli company that manufactures power optimizers and solar inverter systems.
This helps to minimize the cost of the energy generated by its devices. SolarEdge Technologies released its fourth quarter 2021 results on February 15, and revelaed that its revenue rose 54% yoy to $552mn. Upside potential to the average target price of $357 (about 27% upside).
“If renewable energy demand continues to grow at the current pace, green energy stocks will be attractive, especially for long-term investors planning to stay in the market for a long time. legislative and financial initiatives, an increase in energy consumption,” Freedom Finance analyst suggest of the company.
However, analysts also warned that any decision should take into account the risks of such a fast-growing industry, because companies will have to show a significant increase in revenue over a long period of time.
While the company does not pay dividends like others, it has other advantages that may make it possible to think about the possibility of buying its shares during the sale.
SolarEdge has positive free cash flow. Unlike growth companies that depend on debt to operate and invest in their future, SolarEdge relies on its own strength to provide critical protection against today’s rising interest rates and high inflation.
What’s more, SolarEdge’s business is doing incredibly well, even as the solar industry as a whole has been struggling lately. The company recorded a record high quarterly revenue in the third quarter of 2021. SolarEdge also continues to post a gross margin of over 30%.