/Solar%20Panels%20in%20Nature%20Sunny.jpg)
Enphase Energy, Inc. (ENPH) is a global leader in energy technology, boasting a market cap of $16.5 billion. Specializing in home energy solutions for the solar photovoltaic industry, the California-based company pioneers semiconductor-based microinverter technology and integrated energy management platforms to optimize energy generation, storage, and control worldwide.
Shares of the solar equipment giant have significantly underperformed the broader market over the past 52 weeks. ENPH has declined 27.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 28.3%. In 2024, shares of ENPH are down 10.5%, compared to the SPX's 11.5% gains on a YTD basis.
However, zooming in further, shares of Enphase Energy have outpaced the Solar Invesco ETF's (TAN) 35.9% decline over the past 52 weeks.
Enphase Energy stock has seen volatility due to residential solar market concerns, interest rates, and regulatory changes, yet positive analyst sentiment, market recovery expectations, and product innovation have also influenced its performance, leading to periods of outpacing broader markets.
On April 23, the company disappointed investors with its Q1 earnings results, which failed to meet Wall Street forecasts on both top and bottom lines, resulting in a 5.6% drop in its shares in the subsequent trading session. However, with the Biden administration’s recent plans to double the import tax on Chinese solar cells, shares of Enphase have garnered fresh investor attention.
For the current fiscal year, ending in December, analysts expect ENPH's EPS to decline by 51.8% to $1.59. The company's earnings surprise history is mixed. It exceeded the consensus forecast in three of the past four quarters while missing on one occasion.
Out of the 34 analysts assessing ENPH stock, the consensus rating is "Moderate Buy." That's based on 18 "Strong Buy" ratings, three "Moderate Buys," 11 "Holds,” one "Moderate Sell," and one "Strong Sell."
This configuration is slightly less bullish than a month before, with no “Strong Sell” rating on the stock.
On May 6, Seaport Global's analyst Tom Curran reaffirmed a "Buy" rating for Enphase Energy and assigned it a price target of $144. This new target implies an upside potential of 18.8% from current levels.
The mean price target of $125.94 represents a premium of just 3.9% to ENPH's current levels. The Street-high price target of $173 suggests that the stock could rally as much as 42.7%.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
