Enphase Energy stock price target lowered to $30 at BofA on weak market

Investing.com - BofA Securities lowered its price target on Enphase Energy (NASDAQ:ENPH) to $30 from $31 while maintaining an Underperform rating following the company’s second-quarter results. The stock, currently trading at $42.50 with a market cap of $5.58 billion, has seen its value decline by 59% over the past year, according to InvestingPro data.

The firm cited structural weakness in the U.S. residential solar market rather than a cyclical delay, noting that expectations for a significant uptick from the 25D tax credit have been tempered in the third quarter outlook. This market weakness is reflected in Enphase’s revenue decline of 22% in the last twelve months.

BofA highlighted timing constraints for the tax credit, which requires full installation and payment by year-end, making a substantial fourth-quarter improvement unlikely.

The analysis pointed to additional headwinds including third-party ownership challenges due to delayed Treasury guidance on 48E safe harbor rules, ongoing installer bankruptcies, tighter lending conditions, and poor economics for cash and loan options.

BofA noted that Enphase has reduced its 2026 total addressable market projection by 20%, reflecting what the firm describes as "a shrinking market with few near-term catalysts." InvestingPro analysis suggests the stock is currently overvalued, with a FAIR overall financial health score. Subscribers can access 16 additional ProTips and a comprehensive Pro Research Report for deeper insights into Enphase’s valuation and growth prospects.

In other recent news, Enphase Energy Inc . reported its second-quarter earnings for 2025, exceeding both earnings per share (EPS) and revenue forecasts. The company announced an EPS of $0.69, which was higher than the anticipated $0.64, representing a 7.81% surprise. Revenue for the quarter reached $363.2 million, slightly surpassing the forecast of $361.89 million. These results highlight Enphase Energy’s strong performance in the recent quarter. The earnings announcement did not include any additional major news such as mergers or acquisitions. Analyst firms have not reported any upgrades or downgrades for Enphase Energy following these earnings results. The company’s performance continues to draw attention from investors and analysts alike.

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