It’s time to step to the sidelines on solar energy inventory Enphase Energy , in response to Piper Sandler. Analyst Kashy Harrison downgraded shares to impartial from obese, saying the U.S. residential solar energy market might bear a reset this yr on weaker demand. “We still view ENPH as a company with solid products, strong mgmt, best-in-class ops, and an attractive market position; however, we believe US resi demand uncertainty is too elevated. We look for US resi demand stabilization to revisit our rating,” Harrison wrote. ENPH 1D mountain Enphase shares fall The analyst cited latest knowledge from GoodLeap that confirmed a drop in December mortgage originations in comparison with August. GoodLeap is a supplier of financing choices for the residential photo voltaic vitality business that holds about 30% market share, in response to the be aware. “Last Friday post-close, KBRA published its preliminary rating on Goodleap’s new ABS, including a chart indicating a sharp decline in Dec’22 loan originations vs. the Aug’22 peak. Further, solar originations in Dec’22 appear > 10% below Dec’21,” Harrison wrote. “While we expected a deceleration in Cal’23 US resi growth (see note) partially due to higher financing costs adversely impacting regions with marginal economics, we did not anticipate this degree of demand weakness,” he added. Enphase Energy shares are down 17% this yr. The analyst lowered his value goal to $255, down from $350, that means shares have about 16% upside from Tuesday’s shut. Shares had been down greater than 4% in Wednesday premarket buying and selling. —CNBC’s Michael Bloom contributed to this report.
Piper Sandler downgrades Enphase Energy, cites uncertain outlook for U.S. residential solar market