TLDR
- Goldman Sachs raised its price target on ENPH from $51 to $57, keeping a Buy rating
- The new target implies roughly 21.9% upside from the current price
- ENPH stock was down 5.9% on the day, opening at $46.76
- Q1 earnings beat EPS and revenue estimates, but revenue fell 20.6% year-over-year
- Consensus rating across analysts remains a Hold, with an average price target of $40.94
Enphase Energy (ENPH) got a vote of confidence from Goldman Sachs on Wednesday, as the bank lifted its price target from $51 to $57 while keeping a Buy rating on the stock.
Enphase Energy, Inc., ENPH
The new target implies upside of about 21.9% from ENPH’s current price of $46.76, where the stock opened Wednesday — down 5.9% on the day.
Goldman’s move came despite a broader backdrop of mixed analyst sentiment. The stock carries a consensus Hold rating, with an average price target of just $40.94 across 25 analysts.
Of those, nine have Buy ratings, ten have Hold ratings, and six rate it a Sell.
Other recent target changes have gone in different directions. Deutsche Bank nudged its target up from $39 to $40 on April 30, keeping a Hold. Susquehanna cut its target from $36 to $32 on the same day, assigning a Neutral rating.
Roth MKM reaffirmed a Buy and raised its target to $55 back in February. Mizuho and Evercore both sit at $39 and $37 respectively.
Q1 Earnings: A Mixed Bag
Enphase reported Q1 results on April 28. EPS came in at $0.47, beating the $0.43 consensus by $0.04.
Revenue of $282.90 million also narrowly topped estimates of $282.28 million. But the headline number that stood out was a 20.6% drop in revenue compared to the same quarter last year.
A year ago, the company posted EPS of $0.68. For the full year, analysts are forecasting EPS of $0.84.
Net margin stood at 9.64%, and return on equity was 16.88%.
Insiders and Institutions
On the insider front, Director Thurman J. Rodgers sold 137,250 ENPH shares on March 13 at an average price of $43.61, totaling roughly $5.99 million. That reduced his position by 7.91%, leaving him with about 1.6 million shares.
Corporate insiders collectively own 2.90% of the company.
Institutional activity has been more constructive. Several funds added to positions in Q3. Coatue Management boosted its stake by 95.3% to nearly 1.65 million shares. Principal Financial Group grew its holdings by 334.1%.
Dynamic Technology Lab increased its position by 695.8%, though from a smaller base. Institutional investors now hold 72.12% of ENPH stock in total.
ENPH has a 52-week low of $25.77 and a 52-week high of $53.89. Its 50-day moving average sits at $38.17, and its 200-day moving average is at $36.69.
The company carries a debt-to-equity ratio of 0.52, a current ratio of 3.80, and a market cap of $6.16 billion.
Goldman’s revised $57 target now sits above the current 52-week high of $53.89.
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