US Residential Solar Demand May Curb Growth Trajectory Of Enphase Energy: Analyst
Portfolio Pulse from Lekha Gupta
BMO Capital Markets analyst Ameet Thakkar has downgraded Enphase Energy Inc (ENPH) to Market Perform from Outperform and lowered the price target to $148 from $175. The downgrade is due to a deeper than expected trough in U.S. residential solar demand and uncertain recovery timing. Thakkar projects ENPH to resume sequential revenue growth in Q2 FY24, but forecasts only a modest 2% Y/Y increase. He doesn't expect U.S. inverter demand to return to 2022 levels until 2025-2026. ENPH has started shipping IQ8 Microinverters in India.
October 16, 2023 | 7:03 pm
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Enphase Energy has been downgraded by BMO Capital Markets due to a deeper than expected trough in U.S. residential solar demand. The price target has been lowered to $148 from $175.
The downgrade by BMO Capital Markets is based on the deeper than expected trough in U.S. residential solar demand and uncertain recovery timing. This could negatively impact Enphase Energy's revenues and profitability in the short term, leading to a potential decrease in its stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100