The Inflation Reduction Act 2022: Top 5 Winners

In this article, we discuss the top 5 winners of the Inflation Reduction Act 2022. If you want to see some of the other winners in this field, check out The Inflation Reduction Act 2022: Top 10 Winners. 

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

Number of Hedge Fund Holders: 57

Enphase Energy, Inc. (NASDAQ:ENPH) is a California-based company that offers home energy solutions for the solar photovoltaic industry in the United States and internationally. The stock has gained over 57% in the last month as of August 12, 107.30% in the last six months, and about 62% year-to-date. 

On August 11, KeyBanc analyst Sophie Karp raised the price target on Enphase Energy, Inc. (NASDAQ:ENPH) to $363 from $230 and reiterated an ‘Overweight’ rating on the shares. As the analyst expects the Inflation Reduction Act to mainstream larger distributed generation adoption, Enphase Energy, Inc. (NASDAQ:ENPH) should benefit from expanding the market. While the analyst believes that in the short-term Enphase Energy, Inc. (NASDAQ:ENPH) might lag given investor sentiment, she sees solid top-line and earnings growth as well as increasing gross margins from its IQ8 micro-inverters to drive its outperformance in the intermediate to long-term. Enphase Energy, Inc. (NASDAQ:ENPH) remains one of the best positioned companies in her Alternative Energy coverage, the analyst added.

According to Insider Monkey’s data, 57 hedge funds were bullish on Enphase Energy, Inc. (NASDAQ:ENPH) at the end of the first quarter of 2022, up from 50 funds in the preceding quarter. Bruce Emery’s Greenvale Capital is a significant stake holder in the company, with 500,000 shares valued at about $101 million. 

Here is what the ClearBridge Investments Sustainability Leaders Strategy had to say about Enphase Energy, Inc. (NASDAQ:ENPH) in its Q1 2022 investor letter:

“Enphase Energy (NASDAQ:ENPH) is a key solar holding that should be able to take advantage of greater incentives for solar installations in many geographies. The company was also a strong contributor for the quarter, overcoming pressures of a higher discount rate on their strong projected future earnings, raw material inflation and supply chain challenges as their long-term value was reaffirmed.”