Solar stocks continue to shine.
Over the last few weeks, First Solar (FSLR) rocketed higher after Guggenheim analysts raised their price target on the stock to $233, with a buy rating.
Then, Sunrun (RUN) jumped after turning in better than expected earnings, with a note it was able to increase its rates to customers. According to Barron’s, “Sunrun has been able to take advantage of growing government tax credits for renewable power and rising electricity rates to expand its margins, making residential solar a more profitable business. The rate increases boosted the value of each customer by 86% above second-quarter levels.”
Today, SolarEdge Technologies (SEDG) is up $36.40, or 17.22% thanks to European sales and bullish analysts. “We think that yesterday’s strong results signal a reversal of the stock’s underperformance,” Guggenheim analyst Joseph Osha said, as quoted by Barron’s.
For the quarter, the company posted sales of $836.7 million, a 59% jump year over year. That was also well ahead of estimates for $822.4 million. CEO Zvi Lando added, “the results reflect extremely strong momentum in Europe where our revenues grew 90% compared to the same quarter last year.”
Guidance was just as impressive. For the fourth quarter, the company expects for revenues to be within the range of $855 million to $885 million; Non-GAAP gross margin expected to be within the range of 27% to 30%; Non-GAAP operating profit to be within the range of $115 million to $135 million; Revenues from the solar segment to be within the range of $810 million to $840 million; Gross margin from solar segment to be within the range of 28% to 31%.
At this pace, we wouldn’t be shocked to see SEDG again challenge resistance around $330.
Again, SEDG is currently up 17.22%. Volume spiked to 2.5 million, as compared to daily average volume of 1.007 million shares.
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