Enphase Energy price target lowered to $140 from $150 at Roth MKM

Roth MKM lowered the firm’s price target on Enphase Energy to $140 from $150 and keeps a Buy rating on the shares. Despite its view for U.S. residential solar down 15% in 2024 and many U.S. installer/dealer bankruptcies ahead, Roth doesn’t expect Enphase to break recent lows of about $70. The firm, however, sees near-term downside risk with a slower-than-expected U.S. recovery and a longer-than-expected clearing of channel inventory. Roth also sees more SPA discounts ahead, but believes Enphase holds the line on ADLP pricing and, importantly, margins. The firm views international markets and small-scale C&I as a source of growth in 2024.