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Investing.com - Jefferies upgraded Enphase Energy (NASDAQ:ENPH) from Underperform to Hold and raised its price target to $36.00 from $28.00. According to InvestingPro data, the stock is currently trading at a P/E ratio of 27.3x, with analysts’ targets ranging from $27 to $85.
The upgrade follows positive Treasury guidance issued Friday for residential solar, though Jefferies noted Enphase stock has risen only about 10% in response to the news.
Jefferies identified what it called a "market disconnect" regarding the value of safe-harbor spending, which the firm believes is highly likely as third-party owners seek to secure tax credits through 2030.
The firm upgraded its rating in anticipation of better-than-expected near-term revenue for the solar microinverter manufacturer.
Despite the upgrade, Jefferies acknowledged it maintains "lingering concerns on the state of residential solar in outer years." For deeper insights into Enphase’s financial health and growth prospects, including 14 additional ProTips, check out the comprehensive research report available on InvestingPro.
In other recent news, Enphase Energy announced a new safe harbor agreement with a solar financing firm, expected to generate approximately $50 million in revenue. This agreement, signed in early August, involves Enphase’s U.S.-manufactured IQ8HC Microinverters, which will help maintain eligibility for tax credits under the new U.S. federal budget bill. Additionally, Enphase launched its 4th-generation Energy System, featuring the IQ Battery 10C, which offers enhanced energy density and efficiency. The company also confirmed that its products comply with the European Union’s Radio Equipment Directive cybersecurity requirements, ahead of the 2025 deadline.
Jefferies recently lowered its price target for Enphase Energy to $28 from $32, maintaining an Underperform rating. The firm highlighted that several factors need to align before the stock finds meaningful support. Meanwhile, former President Donald Trump criticized renewable energy sources, including solar power, in a recent statement, focusing on their economic impact. These developments reflect ongoing shifts and challenges in the renewable energy sector.
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