Energy stock Enphase (NASDAQ:ENPH) surged upward over 6% at one point in Friday afternoon’s trading, thanks in large part to B.Riley Securities taking another look at the stock. B. Riley found several reasons to give Enphase an upgrade from Hold to Buy, starting with how the stock’s value has been measured over the last several months.
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B. Riley, via analyst Christopher Souther, noted that Enphase’s valuation has dropped better than half so far in 2023 after hitting a high in December. That was enough to set up an “…attractive entry point for long-term investors.” Souther, like other analysts, had some concerns about the U.S. residential market but noted that Europe was offering growth that might offset some of those concerns. Finally, Souther pointed out the upcoming launch of the Gen III battery, which should help fuel a recovery at Enphase.
Indeed, Enphase has been bulking up its European connections. Enphase extended the previous partnership it established with 4blue, giving Enphase better access to solar markets throughout a large swath of Europe. That includes the Netherlands, Luxembourg, Belgium, and even Germany. However, there’s something of a cloud over the solar market in general, thanks to a recent development in Nebraska. A tornado, coupled with baseball-sized hail, all but destroyed a 4.4-megawatt solar field known as the Community Solar Project.
Most analysts, however, are on Enphase’s side here. With 19 Buy ratings, two Holds, and two Sells, ENPH stock is considered a Moderate Buy by analyst consensus. Meanwhile, Enphase stock also offers a 51.46% upside potential thanks to its average price target of $254.76.
