JPMorgan: Time To Buy Enphase Energy

In a report published Wednesday, analysts at JP Morgan initiated coverage of Enphase Energy Inc ENPH with an Overweight rating and a price target of $16. The analysts believe that Enphase Energy "ENPH offers pure-play exposure to rapid growth in residential rooftop solar through 2016, and longer term growth in distributed energy solutions." According to JP Morgan, the company's expansion into the international and commercial solar inverter market, along with increase in residential solar installations ahead of the slated expiry of the US ITC, should act as catalysts for Enphase Energy. Another catalyst is likely to be the company's expansion into the solar-plus-storage and energy management segments. "Module-level power electronics (MLPE) should capture a growing share of the power optimizer and DC-to-AC inverter market, owing to superior energy yield and lower cost of ownership over the lifetime of the rooftop solar system, relative to conventional inverters. Enphase is a pure-play expression of the unit growth in the MLPE market, with up to 45% share of the growing US market," the analysts added. JP Morgan expects the company to witness robust growth in the near- and long-term.