/Goldman upgrades SolarEdge to a buy, sees more than 20% upside ahead
Solar stocks are getting slammed as supply chain bottlenecks hit renewables sector

Goldman upgrades SolarEdge to a buy, sees more than 20% upside ahead

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The recent sell-off in shares of SolarEdge is overdone, and catalysts on the horizon including earnings upside and new product ramps make it an attractive name to own, Goldman Sachs said in a note to clients while upgrading the stock to a buy rating.

The firm noted that while solar stocks generally have historically been volatile, the 40% to 50% decline over the last three months occurred despite solid fundamentals. Analysts led by Brian Lee said the weakness has been driven by a downtick in valuations, which now reflect pre-Biden nomination levels. Ultimately, this suggests that “limited policy catalysts are being baked into the group.”