Background
We recently published an article on Enphase Energy (ENPH) that is similar to this one, where the pull back in ENPH represented a buying opportunity.
Our focus this time is SolarEdge Technologies (
Why The SolarEdge Pullback Presents A Buying Opportunity
Summary
- Solar stocks have been hammered recently on supply chain constraints and investor rotation from growth to value.
- High degree of analyst estimate dispersion introduces greater valuation uncertainty.
- Solar fundamentals, especially demand, have improved while multiples have compressed.
- We believe that the pullback in SolarEdge Technologies represents a buying opportunity based on a number of valuation metrics that we examine in detail in this article.
John Edwards, CFA joined Principal Street Partners in December 2019 and now leads the Infrastructure PLUS strategy. The strategy, goes beyond "bridges and tunnels" to include investments in sectors required for the function of a modern, technology-driven economy, delivered total return in excess of the overwhelming majority of other infrastructure ETFs and funds from its launch the last week of April 2020 through the present (as of November 19, 2021). John has long experience previously held Sr. Equity Research Analyst positions at Credit Suisse and Morgan Keegan as well as Partner at ATLAS Infrastructure. As a publishing analyst for 10 years John was ranked in the top 10 by Institutional Investor multiple times for his coverage of Energy Midstream and MLP's while at Credit Suisse. Prior to his work as an analyst, John worked in business development and project financing of independent power projects for a subsidiary of Edison International. John has also been widely quoted in the financial media including Barron's and the Wall Street Journal.
Analyst’s Disclosure:I am/we are long SEDG, ENPH, RUN. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: Our firm is long SEDG, ENPH, RUN and other solar energy stocks across our various strategies. I wrote this article myself, and it expresses my own opinion. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company mentioned in this article.
Additional disclosure: Principal Street currently has no plans to add to or reduce any positions in SEDG, ENPH, or RUN within 72 hours of publishing this article.
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