Yet Smith also notes that across several metrics, including its price to free cash flow, it seems anything but cheap. He said the solar stock was his new best pick in the solar space because the rest of Wall Street was missing the opportunity. Sutton said the consensus estimate for the extra profits SolarEdge's Kokam lithium battery subsidiary would juice out of the company's Energy Hub inverter business was too low.Īs my colleague Rich Smith points out, SolarEdge has seen sales more than double over each of the last three years - and with analysts forecasting earnings to grow 25% annually for the coming five years, its stock, which is down 25% from recent highs, could appear discounted. SolarEdge Technologies ( SEDG -1.38%), the market leader in optimized inverter solutions for residential, commercial, and small utility-scale customers, was given a helping hand by Barclays analyst Moses Sutton, who upgraded his outlook on the stock from "equal weight" to "overweight". SolarEdge Technologies (CAPS Rating: 4-stars) Those were also the reasons I predicted Lumentum would outperform back in 2019, and have been rewarded with a 75% gain since then, compared to a 43% rise in the S&P 500.
#Big thumbs up upgrade
He has a price target of $112 per share, which - even including the boost shares got from the ratings upgrade - still represents 20% upside.ĬAPS players also like Lumentum's chances of beating the market in the coming years, with 96% of those weighing in saying the opportunities in 5G, LiDAR, and 3D sensing are too good to pass on. The client note was titled, "Lumentum walks, we run to strong buy rating." It said that the stock, which was down 27% at the time from recent highs, was at an attractive entry point.
In a note to clients, Leopold said, "We liked, but did not love, the deal when it was first announced, but the bidding war ended at an elevated valuation for Coherent." He saw Lumentum's decision to not pursue a deal at any cost as a sign of management's "discipline in selecting its battles." Raymond James analyst Simon Leopold was struck by the optical and photonics company's willingness to walk away from what could have turned into an expensive transaction.
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