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Investing.com - Oppenheimer has reduced its price target on Enphase Energy (NASDAQ:ENPH) to $77.00 from $86.00 while maintaining an Outperform rating on the stock. The target remains well above the current trading price of $42.50, with the stock having declined nearly 59% over the past year according to InvestingPro data.
The price target adjustment follows Enphase’s latest financial results, which showed in-line revenue and better-than-expected margins and earnings per share. With a gross profit margin of 36.85% and a healthy current ratio of 1.9, the company has been effectively managing its supply chain and benefiting from ongoing product design improvements.
Oppenheimer noted that while Enphase’s third-quarter 2025 revenue guidance came in below expectations, the company delivered a 220 basis point gross margin upside at the midpoint. The guidance also excludes any pull-in or safe harbor revenue due to pending Treasury guidance, suggesting potential for positive revisions.
The research firm highlighted that Enphase is working with customers and partners to provide lease financing solutions for smaller installers to mitigate demand erosion related to the 25D tax credit transition.
Oppenheimer adjusted its estimates to reflect slower European demand and the U.S. transition to lease financing in 2026, while remaining optimistic about margin recovery as Enphase experiences tailwinds from tariff-related battery cost improvements.
In other recent news, Enphase Energy reported its second-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of $0.69, compared to the anticipated $0.64. The company’s revenue reached $363.2 million, slightly above the forecasted $361.89 million. Despite these positive results, Goldman Sachs maintained its Sell rating on Enphase Energy, with a price target of $32.00. BofA Securities also adjusted its outlook, lowering the price target to $30 from $31 while keeping an Underperform rating. The firm pointed to structural weaknesses in the U.S. residential solar market as a concern, affecting expectations for future growth. These developments highlight the mixed sentiment among analysts despite the company’s better-than-expected quarterly performance. Enphase Energy’s storage shipments and non-GAAP margins also exceeded guidance, adding a positive note to the earnings report.
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