Demystifying Enphase Energy: Insights From 18 Analyst Reviews

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In the latest quarter, 18 analysts provided ratings for Enphase Energy ENPH, showcasing a mix of bullish and bearish perspectives.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 2 4 9 2 1
Last 30D 0 0 0 0 1
1M Ago 1 3 3 0 0
2M Ago 1 0 0 0 0
3M Ago 0 1 6 2 0

Analysts have set 12-month price targets for Enphase Energy, revealing an average target of $77.87, a high estimate of $121.00, and a low estimate of $50.69. This current average has decreased by 19.43% from the previous average price target of $96.65.

price target chart

Decoding Analyst Ratings: A Detailed Look

The analysis of recent analyst actions sheds light on the perception of Enphase Energy by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Gordon Johnson GLJ Research Maintains Sell $50.69 $50.69
Joseph Osha Guggenheim Maintains Neutral $62.00 $62.00
Mark Strouse JP Morgan Lowers Overweight $91.00 $112.00
Brian Lee Goldman Sachs Lowers Buy $105.00 $121.00
Jordan Levy Truist Securities Lowers Hold $65.00 $100.00
Christine Cho Barclays Lowers Overweight $91.00 $114.00
Praneeth Satish Wells Fargo Lowers Overweight $83.00 $101.00
Vikram Bagri Citigroup Raises Neutral $72.00 $71.00
Brian Lee Goldman Sachs Lowers Buy $121.00 $145.00
Kashy Harrison Piper Sandler Lowers Neutral $70.00 $85.00
Chris Dendrinos RBC Capital Lowers Sector Perform $71.00 $85.00
Austin Moeller Canaccord Genuity Maintains Hold $76.00 $76.00
Gus Richard Northland Capital Markets Lowers Outperform $90.00 $110.00
Andrew Percoco Morgan Stanley Lowers Equal-Weight $74.00 $93.00
Austin Moeller Canaccord Genuity Lowers Hold $76.00 $95.00
Daniel Yang HSBC Lowers Hold $81.00 $154.00
Sean Milligan Jefferies Lowers Underperform $61.00 $93.00
Julien Dumoulin-Smith B of A Securities Lowers Underperform $62.00 $72.00

Key Insights:

  • Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Enphase Energy. This information offers a snapshot of how analysts perceive the current state of the company.
  • Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Enphase Energy compared to the broader market.
  • Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Enphase Energy's stock. This examination reveals shifts in analysts' expectations over time.

For valuable insights into Enphase Energy's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Enphase Energy analyst ratings.

Delving into Enphase Energy's Background

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.

Unraveling the Financial Story of Enphase Energy

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

Decline in Revenue: Over the 3 months period, Enphase Energy faced challenges, resulting in a decline of approximately -30.89% in revenue growth as of 30 September, 2024. This signifies a reduction 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 surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 12.02% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 5.04%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Enphase Energy's ROA stands out, surpassing industry averages. With an impressive ROA of 1.42%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Enphase Energy's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.4, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Understanding the Relevance of 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.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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

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