Key Stats for Enphase Stock
- Price Change: +5.4%
- Current Price: ~$50
- Street High Target: $85
Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free)>>>
What Happened?
Shares of Enphase Energy, Inc. (ENPH) climbed 5.4% to close near $50 on Friday, extending a powerful rally after the company declared that the worst of the residential solar downturn is officially over.
Investors cheered the company’s Q4 report, which beat expectations and provided a surprisingly optimistic outlook for 2026
This signals that high interest rates are no longer choking off demand entirely.
The key reason was CEO Badri Kothandaraman’s assertion that channel inventory has normalized and that sell-through rates are accelerating in key markets like California and Europe.
The sentiment shift was palpable, as the stock posted its biggest single-day gain in six years earlier in the week, driven by short covering and new institutional buying.
Analysts at Oppenheimer upgraded the stock, citing that the “destocking cycle” is complete and that Enphase is poised to recapture market share with its new IQ9 microinverter series.
The narrative has flipped from “survival mode” to “growth mode,” as rising utility rates across the U.S. force homeowners to reconsider solar despite financing costs.
See analysts’ growth forecasts and price targets for Enphase stock (It’s free!) >>>
Is Enphase Undervalued Today?
During the earnings call, CEO Badri Kothandaraman did not mince words about the state of the industry.
He stated: “We believe we have seen the bottom… The inventory correction is behind us, and we are entering 2026 with a much healthier channel and a product roadmap that is second to none.”
Kothandaraman highlighted that the company’s new battery products are seeing strong attachment rates, which significantly increases revenue per installation.
CFO Mandy Yang reinforced the bullish tone, adding: “We are guiding for gross margins to return to the 40% range as volume leverage kicks in… our operating discipline during the downturn has positioned us for significant profitability in the recovery.”
To further support the valuation case, Kothandaraman noted: “The economics of solar plus storage have never been better for the homeowner, especially as utility rates continue to climb double-digits in many of our core markets.”
Read the full Enphase Transcript on TIKR to see the 2026 Outlook >>>
While the consensus target is lower, the Street High Target on TIKR suggests that if the recovery takes hold, the stock could nearly double from here.
- Street High Target: $85
- Current Price: ~$50
- Potential Upside: +70.7%
Valuation Deep Dive
The “Bull Case” for Enphase rests on a return to its historical growth trajectory as the solar cycle turns.
With the stock trading at ~$50, it is priced for a slow recovery, but the $85 target assumes a rapid return to 20%+ revenue growth.
- The Cycle Turn: Solar is a cyclical industry, and buying the leader at the “bottom” of the cycle has historically generated massive returns.
- The Margin Expansion: As volumes return, Enphase’s capital-light manufacturing model allows margins to expand quickly, driving earnings growth faster than revenue.
- The Value Gap: The $85 target reflects a normalization of the P/E multiple to levels consistent with a high-growth technology company, rather than a commoditized hardware maker.
If Enphase is correct that the bottom is in, the path to $85 will be driven by quarter-over-quarter improvements in guidance that force analysts to chase the stock higher.
Conclusion: The sun rises again. With a 70.7% upside potential to $85, Enphase Energy offers a compelling turnaround play for investors willing to bet that the residential solar market is ready to shine again in 2026.
See what stocks billionaire investors are buying so you can follow the smart money with TIKR.
How Much Upside Does Enphase Stock Have From Here?
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
See a stock’s true value in under 60 seconds (Free with TIKR) >>>
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
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!
