Enphase upgraded at Seaport, seeing strength in Europe and recovery in U.S.
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Enphase Energy (NASDAQ:ENPH) wobbles between small gains and losses as Seaport Research upgraded the stock to Buy from Neutral with a $185 price target, but solar stocks generally are posting declines in Thursday's trading.
In Europe, Seaport analyst Tom Curran sees Enphase (ENPH) remaining on a "robust growth trajectory through 2025," and the company should achieve average revenue growth for 2024-25 of at least 35%, helped by its established presence in France and Benelux as it captures significant share in Germany, partly by leveraging its home energy management system offering.
On Thursday, the company launched its Enphase Energy System - which it said is its most powerful system to date - in the U.K.
In the U.S., Curran believes a rebound will take hold by the middle of next year, saying the California market will have adjusted to the economics of the new NEM 3.0 solar billing structure, assimilation of the Inflation Reduction Act will strengthen the response to the IRA's investment tax credit incentives, and it will become clear that interest rates have peaked and the Federal Reserve will prepare to reduce rates in H2 2024.
Curran also notes Enphase (ENPH) has launched a new $1B stock buyback program, after it spent $200M to repurchase shares during Q2 to complete a $500M buyback program.

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