Analysts Are Cutting Price Targets of These 5 Stocks

04. Enphase Energy, Inc. (NASDAQ:ENPH)

Number of Hedge Fund Holders: 63

Enphase Energy, Inc. (NASDAQ:ENPH) provides home energy solutions for the solar photovoltaic industry. They specialize in designing, developing, manufacturing, and selling these solutions in the United States and globally. On May 24, Christine Cho, an analyst at Barclays, decreased the price target for Enphase Energy from $248 to $226 and maintained an Equal Weight rating on the company’s shares following the release of their Q1 results. The analyst believes Enphase Energy, Inc. (NASDAQ:ENPH) is well-positioned to capture a larger market share in Europe, particularly in the residential sector.

Aristotle Atlantic Large Cap Growth Strategy made the following comment about Enphase Energy, Inc. (NASDAQ:ENPH) in its Q1 2023 investor letter:

“Enphase Energy, Inc. (NASDAQ:ENPH) designs, develops, manufactures and sells home energy solutions in the U.S. and internationally for the solar industry. The company is the world’s leading manufacturer of microinverters that convert solar-generated D.C. energy to A.C. energy usable in homes and buildings. Enphase introduced the world’s first microinverter system in 2008 and has expanded its offerings to include battery storage systems and proprietary technologies that provide energy monitoring and control services for solar energy systems. It sells its products and solutions directly to solar system distributors, large installers and strategic partners.

We see Enphase having a substantial market share that is gained through a premium product offering, superior customer service and the development of a large and diverse network of solar installers and distributors. The company’s products and services address a growing residential solar market. Coupling battery backup systems with existing and newly installed residential solar systems could accelerate the company’s revenue and earnings growth over the next several years, in our view. Additionally, commercial and international expansion offer additional revenue and earnings upside. Enphase also plans to expand manufacturing capacity in the U.S. during 2023 to benefit from tax incentives related to domestic production included in the Inflation Reduction Act (IRA).”