As the years passed, 2024 turned out to be a bad year for corporate stocks. SolarEdge Technologies Inc. NASDAQ: SEDG. Market capitalization of shares at $800 million fell by 85% since early January, meaning it is back to 2016 levels. For any investor it was Being involved with SolarEdge in the 8 years since then has been quite a challenge, to say the least.
Solar technology today
SolarEdge Technologies
(As of 5:16 p.m. ET)
- 52 week range
- US$10.24
▼
US$102.62
- Target price
- $22.40
At some point during the mania technology bubble caused by pandemicshares are up nearly 2,500%. But, like many other popular stocks that came to characterize At a time when the market was turbulent, there was little meaning behind it all. Hence the sharp jump since then.
However, for those of us who are they looking at SolarEdge with fresh eyes, there are several reasons be excitedalbeit cautiously. The stock is up 40% in the past month, and while it’s still Very in a downtrend it is now trading at long-term support levels.
How Level of Technical Support Can Increase SolarEdge Stocks
It was about $14 mark What bears fizzled out 8 years ago, and it looks like they’re in danger of doing the same thing this time. around. Fundamentals or broader market sentiment aside, technical levels like this can have a big impact on the direction of a stock and can often be self-fulfilling prophecies.
When beleaguered stocks approach a key support level, many investors expect them to hold, so bolder ones often start buying beleaguered stocks as they approach that level. This increased demand gives stocks a much-needed boost and baffles the bears. How then does it turn out that the support line really hold on, more and more investors take this as a sign of confirmation and begin to invest money. Before you know it, the bears have given up trying to push stocks to new lows. They buy to cover their short positions, and the stock rises, perhaps even short compression is added for good measure.
Goldman Sachs moves SolarEdge from sale to buy
SolarEdge Technologies MarketRank™ Stock Analysis
- Overall MarketRank™
- 89th percentile
- Analyst rating
- Reduce
- Pros/cons
- Growth potential 67.1%
- Short interest level
- Bearish
- Dividend Power
- N/A
- Environmental assessment
- -1.01
- Mood News
- 0.38
- Insider trading
- Purchase of shares
- Project Profit Growth
- Growing
See full analysis
Now, we’re still a long way from seeing that happen with SolarEdge, but the technicalities are there. There’s also the fact that the stock just came out. double update from the Goldman Sachs team. SolarEdge previously had a sell rating on the stock, and this week Goldman upgraded the stock to an outright buy. In a note to clients, they noted that SolarEdge “represents what we believe is a unique turnaround story that could benefit from a ‘shrink-to-grow’ strategy starting in 2025.”
Along with the optimistic forecast for stocks, their latest Target price: $19 will will certainly interest investors. Given that SolarEdge closed Wednesday’s session below $14, this indicates a target upside of nearly 40%. Not bad for a stock that has already risen so much over the past month.
Why SolarEdge’s story of change could bring big benefits
Of course, if you look at stocks that have lost so much value. for In a year when the market as a whole has made several all-time highs, there will always be an increased degree of risk. According to Goldman’s own I’ll admit, this update is “probably a little premature,” but for investors seeking huge profits, The risk/reward profile here is quite attractive. There is a lot to like about the company’s ongoing restructuring efforts, which look set to return the company to profitability in the coming quarters. There is also new management at the helm following the announcement earlier this month on the assumption of Shuka Nir as the new CEO.
It’ll be a while more before SolarEdge returns to the lofty heights it spent much of 2021 and 2022 at, but who doesn’t love a good comeback story? If the stock picks a place to begin its rally, this is where it will happen, and given Goldman’s bullish outlook, I’m not sure you’ll want to bet against SolarEdge for long.
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