Analysts Enamored of Enphase Energy Inc (NASDAQ:ENPH)


Energy management solutions provider and micro-inverter manufacturer Enphase Energy Inc (NASDAQ:ENPH) closed sharply higher Wednesday on favourable analyst views.

The stock zoomed 15.84% higher to close at $1.17 on volume of 2.57 million shares.

Technically, the stock is down to multi-year lows, and at these low, oversold levels, the stock may be ripe for a sudden breakout.

Enphase Energy Inc (NASDAQ:ENPH) boosted by analyst upgrades

Analysts at Oppenheimer upgraded their rating on the stock from Perform to Outperform and a price target of $2.00

Oppenheimer have based their rating on rising market share in the US residential solar market, the introduction of AC modules, a lower annual loss due to a cost reduction program and traction on its energy storage solution by 2017.

Avondale pushed up the rating on Enphase from Market Perform to Market Outperform.

Analysts at Cowen too are confident that the cost reduction program of the company would be adequate to ride out price declines due to competition, and are hopeful that the introduction of energy storage devices will enable Enphase to round off its energy management solutions.

“We’ve stated that we’re targeting approximately 50% product cost reduction over two years from the fourth quarter of 2015 to the end of 2017,” said Paul Nahi, CEO and President on the FQ1 conference call. The company reduced its work force by about 11% at the end of the third quarter.

Enphase Energy Inc (NASDAQ:ENPH) misses in FQ1

For the fiscal first quarter Enphase reported EPS of $-0.28, which missed by $0.04, and revenue of $88.68 million, which missed by $1.01 million and was down by 13.8% year on year.

“Our solid sequential growth in revenue and megawatt shipments reflects continued global demand for our solar energy systems,” said Paul Nahi, president and CEO of Enphase Energy. “We began shipping our AC Battery storage solution in Australia and New Zealand during the third quarter and are very pleased with the demand we have seen. We also unveiled our Enphase Home Energy Solution with IQ™, our next-generation integrated solar, storage and energy management offering,” said Nahi in a statement.


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