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Seaport Research Partners upgraded the stock rating of solar technology company, Enphase Energy (NASDAQ:), from Neutral to Buy on Thursday. The firm also set a new price target for Enphase at $185, indicating a potential 50% increase from the stock’s closing price on Wednesday.
Enphase Energy has seen its shares fall by 53% over the course of this year. As of Thursday morning, the company’s shares were trading at $122.49 in premarket trading, marking a 1.1% decrease.
Despite the company’s struggles this year, Seaport Research analyst Tom Curran is optimistic about its future prospects. He anticipates a recovery in the solar industry to coincide with decreasing interest rates and easing inflation pressures by 2024. Curran encourages investors to consider buying into Enphase ahead of this predicted recovery following a significant decline in its stock throughout the year.
Curran cites several factors that position Enphase for success, including ongoing share repurchases and robust growth in Europe’s residential solar market as it continues to expand into new countries. He also predicts a recovery in U.S. residential solar installations by mid- to late-2024.
Enphase faced significant challenges in 2023 as its stock plummeted by 53%. On July 27, the company issued third-quarter revenue guidance that fell short of Wall Street expectations and reported an accumulation of inventory. The broader U.S. market slowdown due to high interest rates has also impacted the solar industry negatively, increasing the cost of financing home projects like installing solar panels, as stated by Enphase President and CEO Badri Kothandaraman during an earnings call in July.
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