On Wednesday, BMO Capital Markets adjusted its outlook on Enphase Energy (NASDAQ:ENPH) shares, a leading solar technology company. The firm reduced the price target from $115.00 to $114.00 while maintaining a Market Perform rating. The decision follows an investor dinner hosted by BMO, which featured Enphase's Senior Director and head of Investor Relations, Zach Freedman.
Discussions during the event touched upon various subjects, including the anticipated recovery of inverter demand in the U.S. versus Europe, the company's battery positioning, and the planned rollout of Enphase's next-generation inverters.
The new inverters, which are Gallium Nitride (GaN) based IQ9s, are expected to be introduced to the residential market in fiscal year 2026, with the commercial segment launch projected for the second half of 2025. These advancements are part of Enphase's ongoing efforts to innovate within the renewable energy sector.
In the wake of the meeting, BMO Capital revised its revenue and EBITDA projections for Enphase Energy for the balance of 2024, as well as for the full years of 2025 and 2026. The adjustments were made to reflect a more cautious stance on the demand for inverters in the European market. Additionally, BMO Capital recalibrated its expectations for the U.S. inverter and battery volume mix based on the insights shared during the event with Freedman.
The reduction in the price target by $1.00 is a response to the perceived challenges in the European market, which may impact Enphase's financial performance. Despite these concerns, BMO Capital's Market Perform rating indicates a neutral outlook on the stock's potential to perform in line with market expectations.
Enphase Energy, recognized for its microinverter systems for the solar photovoltaic industry, continues to navigate the complexities of global energy markets. As the company prepares for the launch of its IQ9 inverters, investors and analysts alike will be closely monitoring its progress and the evolving demand dynamics in key markets.
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