It’s another great day in the sun for solar stock Enphase Energy (NASDAQ:ENPH). Some new analyst remarks and the fundamentals that underscored said remarks sent Enphase up nearly 7% at the time of writing.
The remarks in question came from Piper Sandler’s Kashy Harrison. Harrison hiked the rating on Piper Sandler to “overweight” from its previous “neutral” and gave the stock a price target of $255. What sent Harrison’s opinion rocketing upward was the likely chance that Enphase would be revising its 2023-2024 earnings projections upward, thanks to margins. So far, for the first quarter of 2023, order originations and sales are both looking better than originally forecast. And it gets better from there.
The improvement in sales is great, but it really helps that the international picture is looking better than expected as well. That combination, Harrison notes, should produce somewhere around 40% top-line growth. Given that Enphase is already up around 4,000% in the last five years alone, it would be easy to suggest that that growth has to stall out at some point. And it likely will. But it seems that the end is not yet, and there’s still more room for Enphase to gain. The notion of gains in Europe makes sense, especially given what’s happened with natural gas in Russia.
With 19 Buy ratings against just three Holds, analyst consensus currently calls Enphase Energy stock a Strong Buy, and by a wide margin. Furthermore, with an average price target of $290.14, it also offers 30.52% upside potential.
