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Investing.com - Northland has lowered its price target on Enphase Energy (NASDAQ:ENPH) to $52.00 from $64.00 while maintaining an Outperform rating on the stock. Currently trading at $42.50, InvestingPro analysis suggests the stock is undervalued, despite falling nearly 59% over the past year.
The solar energy company beat consensus earnings expectations by $0.06 per share but reduced its revenue guidance, prompting the analyst firm to adjust its outlook.
Northland cited U.S. tariffs and the loss of tax credits as factors negatively impacting demand in the domestic market for Enphase’s solar and storage products.
Despite these headwinds, the firm noted that rising electricity costs are a positive factor for Enphase, which is also executing on new products and working to reduce the cost of solar and storage solutions.
Northland expects the industry to reach a bottom in the first quarter of next year, as U.S. demand gets pulled forward by customers seeking to take advantage of investment tax credits (ITCs) before potential changes.
In other recent news, Enphase Energy has reported its second-quarter earnings for 2025, surpassing expectations with an earnings per share (EPS) of $0.69, beating the projected $0.64. Revenue also slightly exceeded forecasts, reaching $363.2 million compared to the anticipated $361.89 million. Despite these positive results, Goldman Sachs has reiterated its Sell rating with a $32 price target, citing ongoing concerns. Similarly, BofA Securities has lowered its price target to $30, maintaining an Underperform rating due to structural weaknesses in the U.S. residential solar market. Oppenheimer, however, has adjusted its price target to $77 from $86 while keeping an Outperform rating, acknowledging Enphase’s effective supply chain management and product design improvements. These developments highlight a mixed sentiment from analysts regarding Enphase Energy’s future performance.
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