Enphase Energy surges as Janney upgrades on valuation, demand clarity
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Enphase Energy (NASDAQ:ENPH) +7.1% in Monday's trading after Janney upgrades shares to Buy from Neutral with a $282 price target, saying valuation looks attractive following a 40% drop from a recent peak.
Even as shares have declined, Janney analyst Sean Milligan said public installers have spoken positively about market trends, confirming comments Enphase (ENPH) management made on its Q4 earnings call, and the company has detailed the expected financial impact from 45x investment tax credits in the coming years.
"We see expectations regarding softness in domestic residential markets as 'priced in' at this point, with ENPH trading at a slight discount to its closest competitor," SolarEdge Technologies (SEDG), Milligan wrote.
Operationally, Milligan sees continued margin expansion from the IQ8 sales mix and IQ3 battery storage sales mix in FY 2023 with additional upside in coming years from the introduction of IQ9 products.
Enphase Energy's (ENPH) valuation has fallen below its 10-year average, "presenting an attractive opportunity for long-term buyers," JR Research writes in an analysis published recently on Seeking Alpha.