FBR Capital Downgrades SolarEdge Technologies (SEDG) to Market Perform; Sluggish U.S. Solar Market
- Wall Street surges to new highs; transports set record
- lululemon athletica (LULU) Tops Q3 EPS by 4c; Adj.-Comps Outpaced Views
- Abbott (ABT) Files Complaint to Terminate Alere (ALR) Acquisition
- Costco Wholesale (COST) Tops Q1 EPS by 5c; Comps Up 1%, 2% Ex-Gas
- After-Hours Stock Movers 12/07: (VYGR) (LULU) (HRB( Higher; (OHRP) (VRNT) (CMTL) Lower (more...)
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
FBR Capital downgraded SolarEdge Technologies (NASDAQ: SEDG) from Outperform to Market Perform with a price target of $17.00 (from $32.00), saying it cannot overcome a sluggish U.S. market.
Analyst Carter Driscoll commented, "Yesterday, SEDG delivered F1Q17 results that again show the company is prioritizing cash generation over growth. While revenues of $128.5M missed the low end of guidance ($130M– $139M), gross margin of 32.6% exceeded the guided range (30%–32%), suggesting that SEDG continues to value sustained profitability above chasing less profitable market share. We agree with this strategy. However, we expect the U.S. market to remain sluggish longer than previously thought, with 2017 YOY installation growth closer to 15%–20%, down from 20%–30%. Balance sheet strength allows SEDG to spend aggressively on new product development, sales & marketing personnel to target tier 2 and 3 installers, and more geographic expansion (India, Australia, and Japan). We agree that investment is the right strategy longer term; R&D spending should allow SEDG to stay ahead of competitors technologically, though it comes at a cost of flattening EPS growth. As a result, we have lowered our estimates, price target (to $17 from $32), and rating (to Market Perform from Outperform)."
Shares of SolarEdge Technologies closed at $14.00 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Credit Suisse Downgrades NetApp (NTAP) to Underperform
- MKM Partners Raises Price Target on Arista Networks (ANET) Following U.S. Customs and Border Protection Approval
- Western Digital (WDC): Raising PT After Analyst Day - Baird
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change, Downgrades
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!