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Enphase (NASDAQ:ENPH) Plans to Cut 17% of Its Workforce
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Enphase (NASDAQ:ENPH) Plans to Cut 17% of Its Workforce

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Enphase plans to lay off 17% of its workforce, which is set to impact 500 workers.

Solar energy company Enphase (ENPH) has been having a tough week as Trump’s election victory has caused a wave of analyst downgrades and its stock to plunge. This is because investors are concerned about his campaign promises to halt offshore wind projects and pull back Inflation Reduction Act funding for clean energy. Unfortunately for Enphase, things look like they’re about to get worse, as Reuters reported that the company plans to cut 17% of its workforce. This is set to impact 500 workers.

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In addition, Enphase plans to streamline operations by concentrating contract manufacturing at four of its existing sites: two in the U.S., one in India, and one in China. The company also announced it will end its contract manufacturing in Guadalajara, Mexico.

Industry Concerns May Be Overblown

While Donald Trump’s victory is seen as a blow to the solar industry, some industry experts suggest that these fears may be overblown since campaign rhetoric often doesn’t translate fully into policy.

Raymond James’ 4.2-star analyst Pavel Molchanov reminded investors that many tax credits benefiting green energy also support jobs in Republican states, which makes them harder to remove without political backlash. In fact, over a dozen Republican House members from key states even sent a letter urging GOP leaders to keep these incentives.

Furthermore, energy demand for AI data centers, particularly from tech giants who want carbon-neutral operations, could maintain investments in the sector regardless of Trump’s policies. And while pollution standards and EPA rules may face slower enforcement, Molchanov suggests that federal regulators will face challenges making drastic changes, which means some progress in renewables may continue under Trump’s administration.

Is Enphase Stock a Buy or Sell?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on ENPH stock based on 14 Buys, 12 Holds, and four Sells assigned in the past three months, as indicated by the graphic below. After an 11% decline in its share price over the past year, the average ENPH price target of $96.61 per share implies 44.4% upside potential.

See more ENPH analyst ratings

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