Northland Upgrades SolarEdge (SEDG) to Market Perform, Cites Strong Solar Demand

Northland analyst Gus Richard upgraded SolarEdge Technologies, Inc. (NASDAQ:SEDG) from Underperform to Market Perform on May 24 while keeping the price target at $15.50.

With 80% of the 2.6 terawatts awaiting connection coming from solar and battery projects, the analyst underlined the overwhelming presence of solar energy in the U.S. grid interconnection queue, which bodes well for SEDG.

Richard also noted that developers and energy producers are reportedly stockpiling essential components like panels and batteries to secure 18 to 24 months of supply to meet anticipated demand.

Utility-scale solar offers the quickest and most economical route to increasing power generation, even though the final form of U.S. energy legislation is still uncertain. Although shares of the company have declined meaningfully since the firm’s initial downgrade on May 16, as a non-Chinese supplier with strong cybersecurity capabilities, Richard believes that SolarEdge Technologies, Inc. (NASDAQ:SEDG) stands out as a well-positioned player in this market.

While we acknowledge the potential of SEDG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than SEDG and that has 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None.