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Investing.com - TD Cowen downgraded Enphase Energy (NASDAQ:ENPH) to Hold from Buy, while reducing its price target to $45.00 from $58.00. The stock has fallen nearly 59% over the past year, with the current market capitalization at $5.57 billion.
The research firm cited concerns about the scheduled elimination of the 25D tax credit at the end of 2025, which it expects will negatively impact U.S. customer-owned residential solar demand.
TD Cowen noted that Enphase, as a premium-priced product provider, has "outsized exposure to the customer-owned segment" of the residential solar market.
The new price target is based on 14 times TD Cowen’s revised 2026 EBITDA estimate for the company.
The firm also pointed to current challenges in the residential solar market due to elevated interest rates, compounding the future headwinds from the tax credit expiration.
In other recent news, Enphase Energy has begun shipping its new IQ EV Charger 2 in Australia and New Zealand. This smart charger integrates with Enphase’s solar and battery systems and offers features such as solar energy prioritization, dynamic load balancing, and RFID access control. Meanwhile, Enphase’s Board of Directors has decided to retain T.J. Rodgers as a board member despite a lack of majority shareholder support due to proxy voting guidelines. The board emphasized Rodgers’ expertise in semiconductors and power electronics as vital for the company’s innovation.
In another development, Citi analysts lowered their price target for Enphase Energy to $43 while maintaining a Sell rating, expressing concerns about the future of the residential solar market in the U.S. The analysts anticipate a potential significant decline in U.S. residential solar installations if current legislative proposals are enacted. Additionally, Roth Capital Partners (WA:CPAP) highlighted that a House bill amendment could negatively impact residential solar companies like Enphase by eliminating certain tax credits. These recent developments underscore the challenges and changes Enphase Energy is navigating in the current market landscape.
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