What happened
SolarEdge Technologies (SEDG 0.32%) was a double-digit winner of a stock on Thursday. The solar energy component specialist saw its shares rise by just over 10% on the day thanks to a glowing research note from an analyst at a prominent financial services company.
So what
That morning, Oppenheimer's (OPY 0.36%) Colin Rusch upgraded his recommendation on SolarEdge. He now believes the stock rates an outperform (read:buy) as opposed to the previous perform (neutral) rating. Rusch also set a new price target for SolarEdge at $334 per share, which is 11% higher than its current level.
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"We believe compelling unit economics coupled with emissions reduction policy and energy security are the underlying drivers," he wrote in his latest research note. "Within these trends, we believe power optimization and control are crucial areas of technology differentiation and margin capture," Rusch added.
The analyst feels that companies like SolarEdge offer investors the chance to take advantage of "greening" policy trends currently in vogue. As investments, they are also well positioned to be hedges against inflationary pressures and economic slowdowns.
The niche solar company was one of two stocks Rusch singled out as good plays on this basis. He similarly upgraded his recommendation on next-generation tech components specialist Wolfspeed (WOLF 6.20%) from perform to outperform, resetting his price target to $105 per share.
Now what
The prognosticator's new take on SolarEdge comes at a good time for clean energy stocks. The war in Ukraine and other factors have driven the price of oil up sharply, a dynamic that usually makes investors suddenly more interested in alt-fuel companies. While SolarEdge has faced numerous challenges lately, Rusch's estimation feels realistic; this is certainly a green stock worthy of consideration.
