JP Morgan Analyst Cuts Enphase Energy Price Target Amid Concerns

By Don Francis, Editor
September 16, 2023 12:57 PM UTC
JP Morgan Analyst Cuts Enphase Energy Price Target Amid Concerns

JP Morgan's Mark Strouse lowered their price target on Enphase Energy (NASDAQ: ENPH) by 15.1% from $199 to $169 on 2023/09/15. The analyst maintained their Strong Buy rating on the stock.

According to Strouse, this price target adjustment takes into account JP Morgan's "reduced near-term estimates for inverter companies with exposure to the U.S. residential market and lower investor sentiment across the residential solar space." This suggests that Strouse is anticipating some challenges for inverter companies, including Enphase Energy, in the near future.

In addition to the revised price target for Enphase Energy, Strouse also made adjustments to other names in their portfolio. Sunrun Inc saw its price target lowered by 7.9% from $38 to $35, but the Strong Buy rating was maintained. Sunpower Corp's price target was reduced by 10% from $10 to $9, while the Strong Sell rating remained unchanged. Sunnova Energy International Inc had its price target lowered by 9.4% from $32 to $29, but the Strong Buy rating was maintained. Solaredge Technologies Inc experienced the largest decrease in price target, with a drop of 10.7% from $335 to $299. However, the Strong Buy rating was still maintained.

Analyzing the sentiments of other analysts, it can be observed that 66.7% of top-rated analysts currently rate ENPH as a Strong Buy or Buy, while 16.7% view it as a Hold. Additionally, 16.7% either recommend or strongly recommend selling the stock. This mix of opinions indicates a certain level of uncertainty among analysts regarding Enphase Energy's future performance.

Looking at the consensus forecast among analysts, it is predicted that ENPH will deliver earnings per share (EPS) of $4.78 in the upcoming year. If this forecast proves accurate, it would represent a 13.6% increase in yearly EPS on a year-over-year basis. This suggests that despite the adjusted price target, analysts are still optimistic about Enphase Energy's potential for growth.

Unfortunately, the stock price of ENPH has not fared well recently. Since the company's last quarterly report on 2023/06/30, the stock has experienced a significant decline of 28.2%. Furthermore, on a year-over-year basis, the stock is down a staggering 61.5%. During this period, Enphase Energy has been trailing behind the overall performance of the S&P 500, which itself has experienced a 14.1% decline.

JP Morgan analyst Mark Strouse, who made the aforementioned adjustments to price targets, is highly regarded by WallStreetZen. Strouse is ranked in the top 8% out of 4,329 Wall Street analysts, boasting an average return of 11.8% and an impressive win rate of 43.6%. Specializing in the Basic Materials and Consumer Cyclical sectors, among others, Strouse's insights carry weight within the financial community.

Enphase Energy, Inc. is a company that designs, develops, manufactures, and sells home energy solutions for the solar photovoltaic industry. Based in Fremont, California, the company offers semiconductor-based microinverters that convert energy at the individual solar module level. These microinverters are complemented by proprietary networking and software technologies, providing energy monitoring and control services. Enphase Energy also offers AC battery storage systems, the Envoy communications gateway, the Enlighten cloud-based monitoring service, and other related accessories. The company sells its solutions through various channels, including solar distributors, large installers, original equipment manufacturers, strategic partners, and directly to homeowners via its online store. With its focus on the solar energy market, Enphase Energy plays a pivotal role in promoting renewable energy adoption.

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