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Enphase Energy's Prospects: Analyst Foresees Recovery And Growth Despite Near-Term Market Slowdown

Published Nov 21, 2023 19:45 Updated Nov 21, 2023 21:10
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© Reuters. Enphase Energy's Prospects: Analyst Foresees Recovery And Growth Despite Near-Term Market Slowdown
 
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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

DateFirmActionFromTo
Feb 2022Craig-HallumUpgradesHoldBuy
Feb 2022Wells FargoMaintainsOverweight
Jan 2022Truist SecuritiesMaintainsBuy
View More Analyst Ratings for ENPH

View the Latest Analyst Ratings

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Enphase Energy's Prospects: Analyst Foresees Recovery And Growth Despite Near-Term Market Slowdown
 

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