Enphase Energy (ENPH) PT Lowered to $70 at Citi

Citi analyst Vikram Bagri lowered the price target on Enphase Energy (NASDAQ: ENPH) to $70.00 (from $72.00) while maintaining a Neutral rating.

The analyst comments "Neutral. ENPH beat revenue guidance for the first time in nearly two years. GM was above guidance from IRA credits. 1Q25 core revenue of $322mm matched our estimate but missed consensus by 5%. 1Q outlook indicates FY25 core revenues could be >10% below consensus unless more safe harbor sales are booked or key markets rebound (Figure 3). CA has stabilized, though NEM 2.0 backlog is being worked through. EU revenues were -25% Q/Q vs. Citi app data -26% Q/Q. Double digit rate reductions in FR, ENPH’s largest EU market, have clouded the outlook. AD/CVD on Anode (see note) and China tariffs remain additional risks. On a positive note, R&D is facilitating new product launches, which should drive 2H revenues and GM accretion. Buybacks of ~$200mm in 4Q24 were a surprise and should continue. Overall, we expect ENPH’s after-market outperformance to dissipate and see -ve read throughs for SEDG."

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