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Enphase Energy: Market Wants An Irrational Rally


  • Enphase Energy, Inc. has seen initial signs of a turnaround in the residential solar business in key European countries, but actual demand is lower than expected.
  • The company has been under shipping demand to reduce inventory in the channel, but the market forecasts a nearly 70% boost in sales from the current sell-through levels.
  • The stock already trades at 20x '26 EPS targets, with many questions about the aggressive growth required to reach those levels.
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The solar space has gone through a digestion phase with light at the end of the tunnel finally. Enphase Energy, Inc. (NASDAQ:ENPH) has seen initial signs of the residential solar business turning in key European countries, but the actual demand was far less than expected. My investment thesis remains Neutral on the stock after the recent rally has been met with tepid sell-through demand.

Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 


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