The future is look brighter for shares of SolarEdge Technologies , according to Deutsche Bank. Analyst Corinne Blanchard upgraded the solar stock to buy from hold, saying in a Thursday note to clients that the company’s quarterly results help alleviate some cost, margin and execution fears. “We are increasingly constructive on the name, given previous concerns around cost control, better geographic localization of its supply chain and margin pressure have faded away,” she said. SEDG YTD mountain Shares in 2023 SolarEdge jumped 6.6% on Thursday after posting quarterly results that beat analyst expectations. The company noted a slight improvement in supply chains. The stock is modestly lower for the year but gained another 2% before the bell. Along with the upgrade, Blanchard lifted her price target on shares to $375, reflecting 33% upside from Thursday’s close. The new target takes into account the company’s “growth profile” and stacks up as “fair and justified” to clean technology peers, she said. Looking ahead, the firm expects more margin support for the company as U.S. capacity ramps up and manufacturing credits incentivize production. “The 2Q guide demonstrates the company’s ability to maintain and potentially further improve its gross margin profile, with management commentary sounding solid around the coming quarters,” Blanchard wrote. Other positives for the stock include its diversified commercial and residential mix and exposure to a broad range of global markets where demand remains strong, she added. — CNBC’s Michael Bloom contributed reporting
