Enphase Energy cut at Truist, seeing longer recovery for residential solar
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Enphase Energy (NASDAQ:ENPH) edges higher in Tuesday's trading despite receiving a downgrade at Truist Securities to Hold from Buy with a $135 price target, slashed from $210, seeing potential for a more "prolonged recovery in U.S. resi solar markets than currently priced into shares."
Perhaps most important among Enphase's (ENPH) near-term product launches is the continued rollout of the third generation IQ Battery 5P, which the company recently introduced into Australia, U.S. and Puerto Rico markets with plans for a European rollout later this year, and the company is actively ramping up its new product offerings with plans later to launch an additional variant of its recently launched IQ8P later this year, Truist's Jordan Levy said.
But Levy continues to see Enphase (ENPH) shares warranting a premium to the peer group average given the company's leading margin structure and differentiated products and technology.
While expecting Enphase (ENPH) to play a meaningful role in the theme of home electrification over the coming years, Levy said he sees potential for a prolonged recovery in U.S. resi solar/storage acting as a headwind to shares in coming quarters.
Levy also reiterated Buy recommendations for SolarEdge Technologies (SEDG) and Shoals Technologies (SHLS) with reduced price targets, cut to $210 from $340 and to $30 from $35 respectively, while maintaining a Buy rating for Array Technologies (ARRY) with a $38 PT, up from $32.

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