Shares of Enphase Energy (ENPH) are down in today’s trading and extending the prior day’s 17% fall amid fears that the incoming Trump administration could reduce support for the solar sector. It also didn’t help that Jefferies downgraded Enphase from Hold to Underperform while cutting its price target from $93 to $61.
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Analyst Julien Dumoulin-Smith pointed to uncertainty in the residential solar market, as well as increased competition from Tesla and a market shift from high-quality products to value-driven options. Dumoulin-Smith also noted that Enphase’s premium pricing is a sticking point.
Although the company argues that it deserves a higher price than its peers, potential changes to the Inflation Reduction Act could push consumers toward cheaper solar options, which would pressure Enphase sales until it lowers prices. It’s worth noting that Dumoulin-Smith is a 4.4-star analyst who has enjoyed a 75% success rate on ENPH stock, with an average return of 29.2% per rating.
SEDG Stock Wasn’t Safe, Either
Separately, SolarEdge Technologies (SEDG) wasn’t safe from analysts either, as Piper Sandler downgraded it to Underweight while cutting its price target from $17 to $9. Analyst Kashy Harrison sees serious challenges ahead, such as revenue declines in Europe, rising costs in the U.S., and a lack of clear plans for cost-cutting. With pressure from Tesla and ongoing financial issues, Harrison expects another capital raise may be necessary.
Is Enphase Stock a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on ENPH stock based on 14 Buys, 11 Holds, and three Sells assigned in the past three months, as indicated by the graphic below. After a 6% decline in its share price over the past year, the average ENPH price target of $99.90 per share implies 37.21% upside potential.
