Company Reports

We attended the RE+ conference and trade show in Anaheim, California. The conference and exhibit hall provided an opportunity to meet with companies as well as see latest product unveilings. We highlight our key takeaways below.

On Aug. 26, no-moat SolarEdge Technologies announced that CEO Zvi Lando has resigned effective immediately. The board appointed prior CFO Ronen Faier as interim CEO and has initiated a search for a new CEO. We are maintaining our $33 fair value estimate and leaving our financial forecast unchanged. We view the shares as slightly undervalued.

We lower our fair value estimate for no-moat SolarEdge to $33 per share from $40 following the company’s second-quarter results. Our reduced valuation is driven by reduced long-term margin estimates. We expect shares to remain volatile in the near-term, but believe shares are approaching a bottom as operating results rebound in 2025.

SolarEdge is one of the largest global solar inverter manufacturers, based on revenue. The inverter is often referred to as the brains of a solar system, with its purpose being to convert direct current produced by solar panels into alternating current used by households/grid and optimize energy production.

SolarEdge shares fell 21% on June 25 after the company announced a $300 million convertible note offering. We lower our fair value estimate to $40 from $53 after lowering our long-term revenue and margin assumptions. We think shares are oversold following a sharp selloff year to date, but we expect continued near-term volatility. We reiterate our Very High uncertainty rating.

SolarEdge is one of the largest global solar inverter manufacturers, based on revenue. The inverter is often referred to as the brains of a solar system, with its purpose being to convert direct current produced by solar panels into alternating current used by households/grid and optimize energy production.

On June 18, SMA Solar reduced its sales and EBITDA guidance by 20% and 60%, respectively, for fiscal 2024. SMA shares plunged 31% the day following the profit warning. US inverter companies Enphase and SolarEdge are trading approximately 6% lower at the time of writing following the announcement.

SolarEdge is one of the largest global solar inverter manufacturers, based on revenue. The inverter is often referred to as the brains of a solar system, with its purpose being to convert direct current produced by solar panels into alternating current used by households/grid and optimize energy production.

We lower our fair value estimate for no-moat SolarEdge to $60 from $71 following the company’s first-quarter results. Our reduced valuation is driven by reduced long-term revenue and margin estimates. We view shares as fairly valued.

SolarEdge is one of the largest global solar inverter manufacturers, based on revenue. The inverter is often referred to as the brains of a solar system, with its purpose being to convert direct current produced by solar panels into alternating current used by households/grid and optimize energy production.

We lower our fair value estimate for no-moat SolarEdge to $71 from $75 following the company’s fourth-quarter results. Our reduced valuation is driven by reduced revenue estimates over the medium term. We view shares as fairly valued.

SolarEdge is one of the largest global solar inverter manufacturers, based on revenue. The inverter is often referred to as the brains of a solar system, with its purpose being to convert direct current produced by solar panels into alternating current used by households/grid and optimize energy production.

Clean energy stocks have had a roller-coaster 18 months. Optimism following the passage of the Inflation Reduction Act in August 2022 gave way to rising interest rates in 2023. We highlight three key themes for investors to focus on in 2024: interest rates, U.S. policy, and profitability.

We lower our fair value estimate for SolarEdge to $75 from $147 following the company’s third quarter results and updated outlook. Our reduced valuation is driven by lower long-term revenue and gross margin expectations, coupled with reduced operating leverage. Our no-moat and Very High Uncertainty ratings are unchanged. We view shares as fairly valued.

SolarEdge is the largest global solar inverter manufacturer, based on revenue. The inverter is often referred to as the brains of a solar system, with its purpose being to convert direct current produced by solar panels into alternating current used by households/grid and optimize energy production.

We lowered our fair value estimate for SolarEdge to $147 from $216 after the company announced weak third-quarter results. The driver of our lower valuation is lower long-term revenue and margin expectations. Our no-moat and Very High Uncertainty ratings are unchanged.

SolarEdge is the largest global solar inverter manufacturer, based on revenue. The inverter is often referred to as the brains of a solar system, with its purpose being to convert direct current produced by solar panels into alternating current used by households/grid and optimize energy production.

This week we attended the RE+ conference and trade show in Las Vegas. The conference and exhibit hall provided an opportunity to meet with companies as well as see latest product unveilings. We highlight our key takeaways below.

After updating our modeling assumptions following second-quarter earnings, we lower our fair value estimate for Enphase to $120 per share from $140. Similarly, we reduce our SolarEdge fair value estimate to $216 per share from $238. The primary driver of our lowered valuations is a slight increase to our cost of capital assumption (100 basis points) and modest declines in our margin expectations. We reiterate our no-moat and Very High Uncertainty ratings for both companies. We view shares of SolarEdge as undervalued, while Enphase is fairly valued following the selloff in recent weeks.

SolarEdge is the largest global solar inverter manufacturer, based on revenue. The inverter is often referred to as the brains of a solar system, with its purpose being to convert direct current produced by solar panels into alternating current used by households/grid and optimize energy production.