In a report released yesterday, Jeff Osborne from TD Cowen maintained a Hold rating on Enphase Energy, with a price target of $40.00.
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Jeff Osborne’s rating is based on a combination of factors, including the current market conditions and Enphase Energy’s strategic positioning. The company is experiencing softness in U.S. demand and uncertainty around safe harbor activities, which limits immediate growth catalysts. Despite these challenges, Enphase’s third-quarter guidance is approximately 75% booked, indicating some level of stability in their operations.
On the positive side, Enphase has achieved record battery shipments and is preparing to launch new products like the IQ9 microinverter and a new battery that promises higher density and lower installation costs. These innovations, along with investments in digital tools, could support future growth. However, the lack of safe harbor revenue in the upcoming quarter and expected margin pressures due to tariffs present significant headwinds. Additionally, the anticipated shrinkage in the residential total addressable market by 2026 further tempers the growth outlook, justifying the Hold rating.
In another report released on July 21, Susquehanna also maintained a Hold rating on the stock with a $40.00 price target.