Solar
Enphase: Price is Low for a Global Solar Leader
The analysis below revisits Enphase given its deep discount. Overall, Enphase is a strong product story, a strong management team, and the fundamentals will (eventually) improve. We are not at an inflection point yet on the financials, they’re still a little messy, but we could be within 1-2 quarters of the inflection point. Also, while the market has been preoccupied with selling Enphase, the margins have been quietly improving. This is not being priced in yet, but once top line growth resumes, Enphase will emerge a stronger company fundamentally. Interest rates will continue to weigh on the company, yet the difference between Enphase and many other consumer-facing tech stocks is that Enphase is trading at a deep discount. The stock is down (-53%) YTD and is down (-62%) since it’s December high, which was less than a year ago.
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