By Christiana Sciaudone
Investing.com -- SolarEdge rose 2.3% after Morgan Stanley (NYSE:MS) initiated the photovoltaic inverter maker with a buy-equivalent rating.
U.S. President Joe Biden's executive orders bolstering the clean-energy industry may also be impacting the stock, TheStreet said.
"SolarEdge is the world leader in the solar PV inverter market, a position that we believe will allow the company to continue to gain share in a fast growing space and penetrate other equally exciting markets," Morgan Stanley analyst Stephen Byrd said in a note, according to StreetInsider. He set a price target of $354, which compares to the average $290, according to data compiled by Investing.com.
The U.S. will rejoin the Paris climate agreement in 30 days, reversing former President Donald Trump's decision to withdraw. Biden also signed an executive order imposing a moratorium on oil leasing in the Arctic National Wildlife Refuge.
The news comes a day after analysts urged investors to buy any weakness in SolarEdge and rival Enphase Energy Inc (NASDAQ:ENPH) after Tesla (NASDAQ:TSLA) said it created a new solar inverter that could compete with them, CNBC reported. SolarEdge fell Friday on the Tesla news.
“We believe the selloff is overdone and recommend buying the weakness,” JPMorgan’s Mark Strouse wrote in a note to clients Tuesday.
Goldman Sachs (NYSE:GS) said concerns may be overstated, and Bank of America (NYSE:BAC) noted Enphase and SolarEdge hold about 90% of U.S. residential market share for microinverters and power optimizers, and both are growing internationally.
That said, Tesla's new product may impact SolarEdge since the two have historically had a supply partnership, but Tesla sales are likely only about 2% of SolarEdge's annual revenue.