Enphase Energy (ENPH – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Ameet Thakkar from BMO Capital maintained a Hold rating on the stock and has a $46.00 price target.
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Ameet Thakkar has given his Hold rating due to a combination of factors impacting Enphase Energy’s financial outlook. The company’s revenue and market share are under pressure, with a significant reduction in revenue estimates for the fiscal years 2025 and 2026. This is partly due to the negative effects of tariffs, the decline of safe-harbor related revenues, and customer financial distress, which are expected to create a challenging second half of 2025.
Additionally, Enphase Energy is facing a multi-front battle involving market share, revenue growth, and margins. The company is experiencing a decline in U.S. inverter production and is losing market share, potentially to competitors like Tesla. Furthermore, the impact of Chinese tariffs on battery cell imports is expected to significantly affect gross margins. Despite efforts to find alternative suppliers, the margins are projected to remain below the target in the near term. These challenges contribute to the Hold rating, reflecting a cautious outlook on the stock’s performance.