4 Enphase Energy Analysts Break Down Q4 Results As Stock Rallies

Enphase Energy, Inc. ENPH shares were making gains Wednesday after the solar technology company reported strong quarterly results and issued upbeat guidance.

The Enphase Energy Analysts: BofA Securities analyst Julien Dumoulin-Smith reiterated a Neutral rating on Enphase and increased the price target from $175 to $192.

Raymond James analyst Pavel Molchanov maintained a Market Perform rating.

Needham analyst Vikram Bagri maintained a Buy rating and $255 price target.

KeyBanc Capital Markets analyst Sophie Karp reiterated an Overweight rating and $200 price target.

BofA Says Enphase Energy's Capacity To Outperform Is Alive And Well: Enphase delivered a quarter that was ahead on nearly every key performance indicator, BofA analyst Dumoulin-Smith said. The company's guidance also exceeded expectations, he added.

"Simply put, ENPH's capacity to deliver at or above expectations is alive and well," the analyst said.

Credit on execution is already priced into the relative premium valuation of the stock, the analyst said. Further buybacks are a near term possibility given existing $200 million left on current authorization, he added.

Related Link: What 10 Analyst Ratings Have To Say About Enphase Energy

RayJay Sees Potential For Margin Erosion: Enphase remains among the more crowded trades in clean tech, RayJay analyst Molchanov said.

Enphase and its close peer SolarEdge Technologies, Inc. SEDG share dominance in module-level electronics for the U.S. residential photovoltaic market, the analyst noted. New entrants are, however, working to erode that duopoly, he added.

The competitive landscapes for residential power storage systems and EV charging equipment are more fragmented, Molchanov said.

The pace of commoditization, the analyst said, will translate into relentless cost reduction and potential margin erosion.

Needham Lauds Strong Execution, Share Repurchases: Enphase Energy's revenue upside was driven by healthy microinverter and battery demand, Needham analyst Bagri said. The bottom-line upside came from strong revenues combined with diligent navigation of supply chain issues, he added.

The higher-than-expected revenue guidance reflected robust demand despite price increases, Bagri said.

"We expect the shares to materially outperform today given the beat, solid outlook, strong execution, thoughtful share repurchases and slightly lower than expected exposure to CA," Needham said.

Enphase Energy's Valuation Is Reasonable, KeyBanc Says: Enphase Energy noted impending price increases later in the year and discussed multiple growth avenues in the U.S. and Europe, KeyBanc analyst Karp said in a note.

This highlights the company's ability to maintain attractive growth trajectory despite localized speed-bumps such as NEM 3.0 process in California and the ongoing global supply chain challenges, the analyst said.

KeyBanc's price target is based on a 50 times multiple on estimated earnings per share estimate for 2023, the firm said. The valuation multiple is reasonable given the trading history and attractive growth prospects, it added.

ENPH Energy Price Action: At last check, Enphase Energy shares were rallying 12.14% to $162.04. 

Related Link: How Is The Market Feeling About Enphase Energy Inc?