Enphase upgraded at Piper Sandler on strong international momentum
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Enphase Energy (NASDAQ:ENPH) +8.5% in Monday's trading to top the S&P 500 after Piper Sandler raised its rating to Overweight from Neutral with a $255 price target, citing the potential for meaningful upward earnings revisions in 2023-24 on margins.
With Q1 originations and sales apparently more favorable than forecast, U.S. results are now seen decelerating rather than declining in FY 2023, which combined with significantly more international momentum than expected, may drive ~40% top-line growth in 2023, Piper analyst Kashy Harrison said.
Given the rising IQ8 mix, easing supply chains, and manufacturing credits, Harrison expects Enphase's (ENPH) EBITDA margins will approach the mid-30s in 2023 and 40%-plus in 2024 after hitting 31% in 2022.
"We see Q1 earnings as a critical update capable of validating our view that ENPH can deliver attractive earnings growth within the current environment," Harrison wrote.
Enphase Energy (ENPH) "could have a long runway of future growth ahead," Steven Fiorillo writes in an analysis posted recently on Seeking Alpha.