Enphase Energy, Inc. (NASDAQ:ENPH) shares fell Wednesday after the company missed third-quarter earnings and revenue estimates and issued a fourth-quarter sales forecast that disappointed expectations.
Management cited elevated interest rates and the expiration of the Section 25D tax credit as challenges.
• Enphase Energy shares are approaching critical lows. Why is ENPH stock at lows?
Oppenheimer Downgrades Enphase Energy
Oppenheimer analyst Colin Rusch downgraded Enphase Energy from Outperform to Perform following the results.
Rusch said the company fell short of Wall Street’s third-quarter expectations and issued guidance below forecasts, pointing to baseline quarterly revenue of approximately $200 million from its core businesses.
Although Enphase has focused on protecting pricing and margins, continued price reductions in energy storage are beginning to weigh on gross margins, the analyst added.
Rusch also noted that U.S. residential solar installations remain weak amid elevated interest rates and limited adoption of newer financing options.
The analyst expects additional restructuring costs in the fourth quarter as the company works toward its 2027 profitability goals. He also highlighted seasonal weakness in the first quarter and said demand responsiveness to price cuts remains unproven.
Given the residential market’s history of volatility, investors may wait for clearer signs of a demand recovery before buying the stock, Rusch indicated.
Other Analyst Price Forecast Revisions
Several other analysts lowered their price forecasts for Enphase Energy following the results:
Bernstein analyst Sunaina Ocalan maintained a Market Perform rating and lowered her price forecast to $40 from $56.
RBC Capital analyst Christopher Dendrinos maintained an Outperform rating but lowered his price forecast to $30 from $41.
Susquehanna analyst Biju Perincheril maintained a Neutral rating and cut his price forecast to $26 from $35.
GLJ Research analyst Gordon L. Johnson maintained a Sell rating and a $21.49 price forecast.
Morgan Stanley analyst Andrew Percoco reiterated an Underweight rating and slashed his price forecast to $16 from $24.
ENPH Stock Price Activity: Enphase Energy shares were down 17.02% at $24.70 at the time of publication Wednesday.
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