© Reuters. Oppenheimer Upgrades Wolfspeed (WOLF) and SolarEdge (SEDG) to Outperform on Secular Growth Strength
By Senad Karaahmetovic
Oppenheimer analyst Colin Rusch upgraded shares of Wolfspeed Inc (NYSE:) and SolarEdge (NASDAQ:) from Perform to Outperform on accelerating secular growth.
Still, the analyst urges investors about ongoing volatility in a market that is still dominated by rising interest rates.
“We believe compelling unit economics coupled with emissions reduction policy and energy security are the underlying drivers. Within these trends, we believe power optimization and control are crucial areas of technology differentiation and margin capture. As investors look to balance growth with defensive postures, establishing core positions in differentiated technology platforms positioned to grow in excess of climate mitigation peers should offer hedges on inflation and recessionary concerns. In that context, we are upgrading SEDG and WOLF,” Rusch said in a client note.
The analyst has become more bullish on these stocks as both are showing “highly defensible technology positions poised for outsized growth despite trading at levels with compelling risk/ reward profiles.”
New price targets for WOLF and SEDG are $105.00 and $334.00, respectively.
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