😎 Summer Sale Exclusive - Up to 50% off AI-powered stock picks by InvestingProCLAIM SALE

Enphase Energy Stock Upgraded Amid European Growth and New UK Launch

EditorVenkatesh Jartarkar
Published 09/21/2023, 12:49 PM
© Reuters.

Enphase Energy (NASDAQ:ENPH) Inc., a manufacturer of solar energy equipment, has been upgraded from hold to buy by Seaport Research analyst Tom Curran, as reported on Thursday. Curran has set a price target of $185 for Enphase's stock, indicating a 49% potential increase from its Wednesday closing price of $123.97. The shares haven't reached this target since July 19.

Curran's optimistic outlook is fueled by Enphase's ongoing share buybacks and strong performance in Europe. The company spent $200 million on share repurchases in the second quarter of this year, completing a $500 million buyback initiative established a year ago. Following this, Enphase initiated another buyback program worth $1 billion.

Despite a minor 0.6% dip in premarket trading, Enphase's stock had seen a 5.8% increase over two previous sessions, following a two-year low of $117.16 on Monday.

The company experienced a decrease in U.S. revenue by 12% in the second quarter, following a 9% decrease in the first quarter. However, it saw its European revenue surge by 25% in both quarters. According to Curran, this growth can be attributed to the firm's established presence in France and the Benelux region (Belgium, Netherlands, and Luxembourg) and significant market share in Germany.

In addition to its European success, Enphase recently announced the launch of its Enphase Energy System in the United Kingdom, promoting it as its most powerful system yet.

Curran also anticipates a recovery in U.S. residential solar installations, which he expects to materialize by June next year. This optimism contrasts with the company's recent performance; Enphase's stock has fallen by 53.2% year-to-date through Wednesday.

However, Curran is not alone in his bullish outlook. Out of the 37 analysts covering Enphase surveyed by FactSet, 24 share a bullish stance, 11 maintain a neutral position, and one is bearish. This comes as the iShares Global Clean Energy ETF (NYSE:XLE) ICLN has fallen by 21.8%, while the S&P 500 index SPX has risen by 14.7%.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.