2024-03-31 10:55:14 ET
Summary
- SolarEdge Technologies has faced weak sales and lower product shipments due to excess channel inventory in the solar sector.
- The company reported a 65% YoY decrease in Q4'23 sales, but end demand was $200 million higher at close to $500 million.
- SolarEdge predicts that new products will increase demand and expects a quarterly revenue run rate in the $600+ million range in the second half of the year.
- The stock already trades at over 20x normalized earnings.
The solar sector has faced a brutal year as demand surged in 2022 following the Russian invasion of Ukraine and the globe fell under heightened energy concerns, especially in Europe. SolarEdge Technologies ( SEDG ) has now faced an extended period of weak sales and even lower product shipments due to excess channel inventory. My investment thesis has now shifted more Neutral on the stock, as the solar sector exits the seasonally weak period with a better inventory dynamic going forward....
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SolarEdge: Under Shipping Demand