In a report released today, David Arcaro from Morgan Stanley maintained a Sell rating on Enphase Energy, with a price target of $28.00.
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David Arcaro’s rating is based on several key observations regarding Enphase Energy’s financial outlook and market conditions. Despite Enphase Energy’s recent performance exceeding expectations in terms of revenue and profitability, the company faces significant challenges in the European market, where no immediate recovery is anticipated. Additionally, the guidance for the fourth quarter was lower than expected, primarily due to decreased battery shipments and elevated inventory levels, indicating potential future demand issues.
Furthermore, the company anticipates a substantial decline in revenue for the first quarter of 2026, driven by the expiration of certain tax credits. This, combined with the company’s strategy to address tariff impacts and its plans to pay down convertible notes due in 2026, suggests financial pressures that could impact future performance. These factors collectively contribute to the Sell rating, as they indicate potential headwinds for Enphase Energy in the coming years.
In another report released today, BMO Capital also maintained a Sell rating on the stock with a $31.00 price target.
Based on the recent corporate insider activity of 25 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ENPH in relation to earlier this year.