Critical Insights From Enphase Energy Analyst Ratings: What You Need To Know

Ratings for Enphase Energy ENPH were provided by 14 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $122.93, a high estimate of $150.00, and a low estimate of $94.00. This current average has increased by 9.56% from the previous average price target of $112.20.

Breaking Down Analyst Ratings: A Detailed Examination

The standing of Enphase Energy among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Enphase Energy. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Enphase Energy compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Enphase Energy's stock. This comparison reveals trends in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Enphase Energy's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Enphase Energy analyst ratings.

Get to Know Enphase Energy Better

Enphase Energy is a global energy technology company. The company delivers smart, easy-to-use solutions that manage solar generation, storage, and communication on one platform. The company's microinverter technology primarily serves the rooftop solar market and produces a fully integrated solar-plus-storage solution. Geographically, it derives a majority of revenue from the United States.

Enphase Energy: Financial Performance Dissected

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: Enphase Energy's revenue growth over a period of 3 months has faced challenges. As of 31 December, 2023, the company experienced a revenue decline of approximately -45.1%. This indicates a decrease in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Enphase Energy's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 6.91%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 2.09%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Enphase Energy's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.6%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Enphase Energy's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.32, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

What Are Analyst Ratings?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.