Enphase Energy Stock Under Pressure After Downgrade: Retail Sentiment Stays Strong

Shares of Enphase Energy fluctuated in early morning trade after receiving a downgrade from Susquehanna citing slower residential solar installations in the US, but retail sentiment saw an uptick.

The semiconductor company’s rating was downgraded from a "positive" to "neutral" by Susquehanna, several media outlets reported Wednesday, citing a revised price target of $104.00, down from $147.00 quoted by the firm.

Enphase stock traded up 0.27% as of 10:19 am ET on Wednesday.

Sentiment meter for the Enphase stock turned ‘extremely bullish’ (88/100) from ‘bullish’ a day ago. Message volumes also inched up to ‘extremely high’ from ‘neutral’ a day before.

Susquehanna expects residential installations to fall by more than 20% year-on-year in 2024, with a slight rebound expected in 2025, the firm was quoted as saying in Investing.com. Continuing project delays and uncertainty surrounding the US elections could adversely affect smaller developers, according to the report.

This is the second downgrade for Enphase this week. On Tuesday, RBC’s Christopher Dendrinos revised down his rating to ‘Sector Perform’ from ‘‘Outperform,’ with a reduced price target of $100, down from $125.
Dendrinos cited competitive market pressures and slower growth, pegging his 2025 revenue projections at $1.825 billion, which was 8% below consensus, and  2026 revenue at $2.05 billion, which is 13% below consensus.
In July, Barclays reduced its price target from $131.00 to $129.00, setting an "overweight" rating for the company.

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