Enphase Energy price target lowered to $114 from $115 at BMO Capital

BMO Capital lowered the firm’s price target on Enphase Energy to $114 from $115 and keeps a Market Perform rating on the shares. The firm’s meeting with the company’s head of investor relations provided a more detailed picture of the drivers of potential recovery of the U.S. residential solar market, where capacity growth should finish about 40% lower in 2024 vs 2023, the analyst tells investors in a research note. Based on likelihood for additional rate increases, greater Inflation Reduction Act domestic content compliant installs and normalization of California install rates, a 30%-40% year over increase in U.S. demand might not be as far off as some think, though BMO’s updated FY25 revenue estimate already incorporates a 38% improvement in U.S. inverter demand, the firm added.