Benzinga - by Lekha Gupta, Benzinga Editor.
Mizuho Securities analyst Maheep Mandloi initiated coverage on Enphase Energy Inc (NASDAQ: ENPH) with a Buy rating with a price target of $131.
The analyst notes that ENPH has differentiated patent-protected technology, a strong position in the U.S. residential solar market, and sees growth opportunities in battery storage shipments with inverters.
The analyst notes near-term demand slowness and inventory destocking are priced in.
The analyst expects international revenues to account for ~38% of their solar revenue estimate by FY25 (vs. 28% in 2022) on the expected expansion of operational presence and dealer networks in Europe and other markets.
Mandloi also estimates ENPH's share of battery revenues to increase to 26% by FY25 (vs. 10% in 2023), led by the ability to upsell batteries to long-tail installers.
On the other hand, the analyst expects FY24 revenues to decline by 18% Y/Y owing to a weaker demand outlook and inventory destocking in the U.S. and Europe.
Nevertheless, the analyst projects demand growth to return in H2 FY24 and a nominal 8%-10% sector growth annually to resume in 2025.
Consequently, Mandloi sees revenue and adjusted EPS of $2.325 billion and $4.57 in FY23 and $1.917 billion and $4.70 in FY24.
Last month, ENPH reported Q3 FY23 EPS of $1.02, missing the $1.03 estimate and revenue of $551.1 million, which fell short of the $566.02 million estimate.
Price Action: ENPH shares are trading lower by 0.54% at $97.96 on the last check Tuesday.
Latest Ratings for ENPH
| Feb 2022 | Craig-Hallum | Upgrades | Hold | Buy |
| Feb 2022 | Wells Fargo | Maintains | Overweight | |
| Jan 2022 | Truist Securities | Maintains | Buy |
View the Latest Analyst Ratings
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.