Enphase Energy Inc (NASDAQ:ENPH) shares dropped nearly 30% this morning, after the microinverter maker announced restructuring and cost savings initiative that will see the firm reduce its global workforce by around 11% and cut annual operating expenses by $20 million. In addition, Enphase issued preliminary 4Q16 guidance, and launched a secondary equity offering.

Needham analyst Edwin Mok commented, “As we had outlined in our SPI recap note here, the U.S. residential solar market is showing signs of sluggish growth that could persist into 2017. We believe restructuring is necessary to lower breakeven for the model and address the ongoing cash burn until the market recovers. We believe the secondary offering will help shore up its balance sheet by providing working capital to ramp the AC battery and the Gen-6 microinverters. As ENPH continues to navigate tough industry conditions, we prefer to remain on the sidelines until we see signs of recovery.”

Mok reiterated a Hold rating on shares of Enphase Energy without providing a price target.

As usual, we like to include the analyst’s trackrecord when reporting on new analyst notes. According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Edwin Mok has a yearly average return of 2.9% and a 57% success rate. Mok has a -66.1% average return when recommending ENPH, and is ranked #852 out of 4189 analysts.

Out of the 7 analysts polled by TipRanks, 6 rate Enphase Energy stock a Hold, while 1 rates the stock a Sell. With a return potential of 14%, the stock’s consensus target price stands at $1.90.