Key Stats for Enphase Energy Stock
- Price change for Enphase Energy stock: 38.6%
- $ENPH Share Price as of Feb. 4: $52
- 52-Week High: $71
- $ENPH Stock Price Target: $44
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What Happened?
Enphase Energy (ENPH) stock rocketed 38.6% yesterday after the solar equipment maker delivered better-than-expected guidance and reassured investors that demand has bottomed out.
- Enphase reported fourth-quarter revenue of $343.3 million, with U.S. sell-through jumping 21% quarter-over-quarter as homeowners rushed to install solar systems before the Section 25D tax credit expired.
- However, European revenue fell 29% sequentially as that region continues to struggle. Tariffs also took a toll, cutting non-GAAP gross margins by 5.1 percentage points.
- In the first quarter, Enphase stock received a boost from management’s revenue guidance of $270 million to $300 million, which includes approximately $35 million in safe-harbor sales.
CEO Badri Kothandaraman told investors the company is “about 90% booked at the midpoint” and expects Q1 to mark the bottom, with improvements building throughout 2026.
The company also addressed its balance sheet, planning to use cash on hand to settle $632.5 million in convertible notes due March 1.
Kothandaraman highlighted new financing options, such as prepaid leases, to offset the impact of lower tax credits and support demand recovery.
Enphase stock also benefited from a wave of analyst upgrades. RBC Capital’s Christopher Dendrinos raised his rating to “Outperform” from “Sector Perform” and hiked his price target to $54 from $31, citing a demand bottom and opportunities to gain share with new commercial products.
BMO Capital’s Ameet Thakkar upgraded the stock from “Underperform” to “Market Perform” with a $41 price target, noting management’s “more definitive than expected” outlook for second-quarter growth.
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What the Market Is Telling Us About Enphase Energy Stock
The massive rally in Enphase stock suggests investors believe the worst is over for the residential solar market.
The combination of lean channel inventory, stabilizing demand, and new financing structures appears to have dramatically shifted sentiment. Peers also rallied on the news, with SolarEdge climbing 13% and Sunrun jumping 12.2%.
However, risks remain.
- The surge in installations ahead of the tax credit change could create a demand hangover later in 2026.
- Europe’s ongoing weakness adds another concern, as does the uncertain impact of tariffs on margins.
- William Blair analyst Jed Dorsheimer cautioned that the U.S. solar market could still decline roughly 20% this year despite the optimistic tone.
Still, Enphase stock appears to be pricing in a recovery narrative.
Investors should watch whether second-quarter revenue accelerates as management expects and whether new products, such as the fifth-generation battery and IQ9 commercial microinverters, gain traction.
If execution meets guidance, Enphase stock could have room to run from current levels.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
