William Blair analyst Jed Dorsheimer has maintained their neutral stance on ENPH stock, giving a Hold rating today.
Jed Dorsheimer has given his Hold rating due to a combination of factors affecting Enphase Energy. The company faced a challenging first quarter with a decline in demand and seasonality impacting its bottom line, although some losses were mitigated by safe harbor revenue. Additionally, Enphase’s gross margin saw a decrease, attributed to lower bookings and the impact of new U.S. tariffs.
These tariffs are expected to further strain Enphase’s financial performance, particularly affecting its battery segment due to reliance on Chinese manufacturing. The solar industry as a whole is experiencing difficulties with increased competition and market uncertainties, which have led to reduced demand and paused investments. Despite these challenges, Enphase’s new IQ9 microinverter offers a positive outlook, promising efficiency and cost reductions, but the overall macroeconomic environment casts a shadow over its potential success.