Enphase Energy (ENPH – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Dimple Gosai from Bank of America Securities reiterated a Sell rating on the stock and has a $71.00 price target.
Dimple Gosai has given his Sell rating due to a combination of factors affecting Enphase Energy’s (ENPH) performance and outlook. The company’s recent quarter saw microinverter shipments significantly decline, falling short of expectations by a substantial margin. Furthermore, the company’s strategy to reduce channel inventory, while possibly prudent, has resulted in consecutive quarters of under-shipping, and Enphase’s sell-through demand projections remain much lower than previous highs. Gosai’s concerns also include the company’s second-quarter revenue guidance, which is notably below both Bank of America’s estimates and consensus expectations, prompting a downward revision of future earnings estimates.
Additionally, market-specific challenges, particularly in the United States, underpin Gosai’s cautious stance. Weak demand outside of California has been exacerbated by seasonality, with declines surpassing typical patterns. California itself faces headwinds due to the transition to NEM 3.0, with uncertainty about future installation rates and potential risks from dealer bankruptcies. In light of these negative estimate revisions and ongoing pressures from both macroeconomic and industry-specific factors, Gosai has adjusted the price objective lower, further justifying the Sell rating for Enphase Energy.
In another report released yesterday, Guggenheim also downgraded the stock to a Sell with a $92.00 price target.
Based on the recent corporate insider activity of 46 insiders, corporate insider sentiment is neutral on the stock.
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Enphase Energy (ENPH) Company Description:
Enphase Energy, Inc. is an energy technology company that provides energy management technology solutions for the solar photovoltaic industry worldwide. It engages in designing, developing, manufacturing and selling software-driven home energy solutions, which connect energy generation, energy storage and web-based control and communications management services.
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