Artisan International Small-Mid Fund on SolarEdge Technologies
Thesis
SolarEdge is a market leader in residential and commercial solar inverters and is progressing through an operational turnaround. The near-term outlook remains volatile following weaker-than-expected third-quarter revenue guidance and uncertainty around subsidies and policy. Over the longer run, the fund remains focused on SolarEdge's technological lead in inverters and growing storage opportunities. Development of a solid-state transformer platform for data centres provides another potential growth avenue.
“Over the long run, we are focused on the company’s technological lead in inverters, growing opportunities in storage and development of a solid-state transformer platform for data centers.”
Key risks
- Weaker-than-expected near-term revenue
- The subsidy cliff
- Policy and restrictions affecting foreign materials
- Volatile AI data-centre sentiment