Citi sees ‘stretched’ valuations for both Enphase, SolarEdge

Citi removed the firm’s positive short-term view on Enphase Energy (ENPH). The rally in shares of both Enphase and SolarEdge (SEDG) has been due to solid state transformer excitement and a recovery in European solar demand, the analyst tells investors in a research note. Citi says, however, that rate trends remain unfavorable while solid state transformers is a crowded competitive landscape with 18 players developing solutions. The firm prefers Enphase shares to SolarEdge but feels the valuations of both stocks are now “stretched.”