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SolarEdge tops S&P leaderboard as Cowen reiterates buy, hikes PT to $360

SolarEdge Technologies (NASDAQ:SEDG) is Monday's top performer on the S&P 500, +3.1%, after Cowen reiterated its Outperform rating and hiked its price target to $360 from $309.

SolarEdge (SEDG) is "well positioned to benefit from secular solar demand driven by policy and higher electricity rates," analyst Jeffrey Osborne wrote.

Cowen sees "three key levers to expand gross margin in the near term: the ramp of the Mexico facility, as well as the Sella 2 battery cell facility in South Korea, and higher average selling prices from recent price increases."

Osborne notes SolarEdge shares (SEDG) trade at a 40%-plus discount to Enphase (ENPH) on 2023 earnings, and expects the multiple discount relative to Enphase to compress as margins improve.

SolarEdge Technologies (SEDG) is "benefiting from strong momentum particularly in Europe which is facing an energy crisis, driving accelerating demand for solar," BOOX Research writes in an analysis published on Seeking Alpha.