What happened
Shares of SolarEdge Technologies (SEDG -6.08%) have jumped today, up by 9% as of 3:30 p.m. EDT, despite Barclays initiating coverage on the stock with an equal weight rating (equivalent to neutral). The pop is more likely attributable to a broad market rally driven by continued hopes around a massive economic stimulus bill to help mitigate the impact of the COVID-19 pandemic.
So what
The $2 trillion aid bill is moving through Congress following negotiations among lawmakers. They're scheduled to vote on the package today. Markets also skyrocketed yesterday on the same hopes.
Image source: Getty Images.
Meanwhile, Barclays analyst Moses Sutton started off SolarEdge shares with a lukewarm rating and assigned a price target of $99. SolarEdge makes power inverters, which are necessary to convert sunlight into electricity, for solar photovoltaic systems.
Sutton recommends that investors consider rival Enphase Energy (ENPH -2.50%) instead, assigning an overweight rating (equivalent to a buy) on Enphase shares alongside a $67 price target. Enphase is growing faster and has a stronger balance sheet, according to the analyst.
Now what
The coronavirus outbreak has sparked fears that the global economy could dip into a recession, as businesses all around the world have been shuttered in an effort to contain the disease. Sutton believes that the leading companies within the solar power inverter industry -- SolarEdge and Enphase -- are better positioned to weather the macroeconomic downturn that COVID-19 will cause.
