SolarEdge upgraded to Equal Weight from Underweight at Morgan Stanley

Morgan Stanley analyst Andrew Percoco upgraded SolarEdge (SEDG) to Equal Weight from Underweight with a price target of $18, up from $11. The company’s stronger free cash flow generation and clearer strategic direction reduces liquidity concerns, the analyst tells investors in a research note. The firm upgraded the shares as a result, but still emphasizes caution to investors given SolarEdge’s “unstable” end-market demand. The company’s Q1 guidance was better than expected, likely due in part to safe harboring benefits, contends Morgan Stanley.