Enphase Energy, Inc. (NASDAQ:ENPH) stock fell more than 9% Wednesday after analysts lowered their price forecasts for the energy technology company. A broader market selloff added to the pressure.
Analysts Cut Price Forecasts
Morgan Stanley analyst Andrew Percoco maintained an Underweight rating on the stock and lowered his price forecast to $24 from $27 on Wednesday.
Similarly, Susquehanna reduced its price forecast to $35 from $37 while maintaining a Neutral rating.
Earlier, on Oct. 6, Barclays lowered its price forecast to $44 while maintaining an Equal-Weight rating.
Overall, Enphase carries a Hold consensus rating, with an average price forecast of $41.40.
Enphase Energy Faces Earnings Test
Enphase Energy is scheduled to report quarterly earnings Oct. 27.
Analysts expect earnings of 51 cents per share, down from 90 cents a year earlier. Revenue is expected to decline to $304.52 million from $410.43 million.
The company makes microinverters, battery storage systems and other solar energy products. Its business remains sensitive to U.S. residential solar demand and financing conditions.
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Technical Analysis
Enphase Energy remains under pressure, with shares trading below their major moving averages.
The stock is about 12% below its 20-day simple moving average of $32.96 and nearly 20% below its 50-day average of $36.10.
Its relative strength index (RSI) stands at 28.39, indicating oversold conditions. While this could support a short-term recovery, it does not necessarily signal a lasting reversal.
Traders are watching support near $29, followed by the 52-week low of $25.77. Resistance stands near $34.
ETFs With Enphase Energy Exposure
Enphase Energy is held by several clean energy ETFs, including the Corgi Battery Energy Storage Systems ETF (NASDAQ:WATS), with a 5.99% weighting; the iShares Global Clean Energy ETF (NASDAQ:ICLN), with 4.40%; and the Invesco Solar ETF (NYSE:TAN), with 6.59%.
ENPH Price Action
Enphase Energy shares were down 9.34% at $29.04 at the time of publication Wednesday, according to Benzinga Pro data.
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