Roth Capital analyst Philip Shen is out with a research report on Enphase Energy Inc (NASDAQ:ENPH) after recently hosting meetings with the firm’s Co-founder Raghu Belur and CFO Berg Garcia.

Though the firm’s management team indicates positive steps are being made forward, the analyst remains sidelined for now, reiterating a Neutral rating on shares of ENPH while boosting the price target from $1.05 to $1.14, which represents a nearly 16% downside from current levels.

Shen explains, “Management is optimistic about turning a corner as it sees hitting cost parity with optimizers sometime in mid-2017, while demand for its storage solution and its AC module ramps up. While we are encouraged by the company’s progress, we believe the stock will likely continue to languish at these levels until management starts to deliver on the higher expectations.”

Considering the firm’s state of finances coupled with seasonal weakness, ENPH has raised around $14 million in its fourth quarter as well as put in place a reorganization to reign in operating expenses (opex) by $20 million per year for around $5 million per quarter commencing the first quarter of 2017.

“Management continues to assume aggressive ASP erosion through 2017 and expects to end 2017 with as much cash as the company starts 2017 with,” the analyst concludes, noting that with $100 million in revenue and circling $22 million of operating expenses per quarter, the management team intends to reach breakeven status.

As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks, Philip Shen is ranked #4,162 out of 4,256 analysts. Shen has a 22% success rate and faces a loss of 18.7% in his annual returns. When suggesting ENPH, Shen forfeits 30.4% in average profits on the stock.

TipRanks analytics exhibit ENPH as a Buy. Out of 4 analysts polled in the last 3 months by TipRanks, 50% are bullish on Enphase stock and 50% remain sidelined. The consensus target price stands at $2.55.screen-shot-12-06-16-at-07-16-pm