An investment view on SolarEdge Technologies and Coinbase shares

According to Deutsche Bank, the future looks brighter for SolarEdge Technologies $SEDG stock.

In a note to clients Thursday, analyst Corinne Blanchard raised her recommendation on the solar company's stock to "buy" from "hold" and said the company's quarterly results help alleviate some concerns about costs, margins and execution.

"We are increasingly constructive given that previous concerns about cost control, better geographic localization of the supply chain and margin pressure have dissipated," she said.

SolarEdge jumped 6.6% on Thursday after posting quarterly results that beat analysts' expectations. The company saw a slight improvement in its supply chain business. For the full year, the stock was down slightly, but gained another 2% before trading began.

Along with the improvement, Blanchard raised her target price on the stock to $375, reflecting a 33% increase from Thursday's close. The new target reflects the company's "growth profile" and stands as "fair and reasonable" relative to comparable clean-tech companies, she said.

Going forward, the company expects more margin support as U.S. capacity increases and production credits motivate production.

"The Q2 guide demonstrates the company's ability to maintain and potentially further improve its gross margin profile, with management's comments sounding solid for the upcoming quarter," Blanchard wrote.

Other positives for the stock include a diversified mix of commercial and residential properties and exposure to a wide range of global markets where demand remains strong, she added.

Despite Coinbase Global $COIN 's better-than-expected quarter, many analysts remain cautious about the crypto exchange's long-term outlook, citing the regulatory and legal backdrop as a major hurdle for the stock.

Shares were trading more than 8% higher in pre-market trading, thanks in part to a smaller-than-expected loss.

But even with this seemingly intact near-term outlook, Wells Fargo' s Jeff Cantwell warned that the medium- and long-term trajectory appears limited, calling the regulatory backdrop a "major hurdle."

Cantwell reiterated an underweight rating on the stock. He did raise his price target for Coinbase to $43 from $40, but that still represents a decline of more than 10%.

Uncertain regulatory outlook
One of the biggest concerns for analysts is the uncertain regulatory environment for the company.

Earlier this year, Coinbase received a Wells notice from the Securities and Exchange Commission threatening the company with a lawsuit over possible securities violations. In an April response, the company said an enforcement action against it would "fail on the merits."

Goldman Sachs analyst Will Nance said he sees few catalysts for greater expansion of retail sales in the United States in the near future, adding that he has a negative outlook for the stock given the "lack of visibility" around Coinbase's growth and the adverse effects of regulation. Nance has a sell recommendation on Coinbase stock.

Concerns about the company's betting business also give some analysts reason to pause. Staking is used by some investors to earn passive returns on their cryptocurrencies by tying up tokens in the network for a period of time, and represents a significant revenue opportunity for exchanges.

"Although earnings were significantly better than expected, the outlook generally does not appear as good," wrote Kenneth Worthington of JPMorgan. "Volumes are under further pressure in Q2 despite much higher cryptocurrency prices, USDC has declined significantly and changes to the staking service at Coinbase may not be driving growth as we once thought."

Worthington maintained a Neutral rating, but raised his target price to $59 per share, an approximate 20% increase from Thursday's close.