Praneeth Satish, an analyst from Wells Fargo, maintained the Buy rating on Enphase Energy (ENPH – Research Report). The associated price target was lowered to $77.00.
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Praneeth Satish’s rating is based on the potential for Enphase Energy to expand its margins significantly over the coming years. Key drivers for this expansion include the introduction of new products, such as the fourth generation battery and the IQ9 microinverter, which are expected to reduce costs and improve efficiencies. The company’s ability to enhance its gross margin, estimated to reach 46% by 2027, is a major factor in the positive outlook.
Furthermore, Enphase Energy’s strategic agreements, like the safe harbor deal, are anticipated to provide substantial short-term revenue boosts that align with the company’s long-term growth strategies. The cost savings associated with the new generation battery products, including the reduction in labor and material costs, position Enphase competitively in the market, potentially increasing its share and profitability. These elements combined suggest a promising growth trajectory, justifying the Buy rating.
In another report released today, Barclays also maintained a Buy rating on the stock with a $86.00 price target.
ENPH’s price has also changed moderately for the past six months – from $103.390 to $65.265, which is a -36.87% drop .