Roth Capital Slashes Price Target for Enphase Energy Inc (ENPH) Following 3Q Miss

In a research report released Wednesday, Roth Capital analyst Philip Shen reiterated a Neutral rating on shares of Enphase Energy Inc (NASDAQ:ENPH), while slashing the price target to $1.05 (from $1.50), after the petaluma solar microinverter maker posted light third quarter revenue of $89 million, compared to consensus estimate of $90 million. Management sees fourth-quarter revenue of $90-100 million compared to consensus of $94 million.

Shen noted, “ENPH delivered a slight Q3 miss and reiterated its Q4 guidance provided during its stock offering. Q3 results were somewhat disappointing, though volumes are improving modestly. Management reaffirmed its goal to reduce costs 50% by YE’17 as compared to Q4’15. Looking ahead, we see the potential for greater competition and another leg down in ASPs.”

“We maintain our 2016 revenue forecast of $325mn vs. prior consensus of $327mn and maintain our non-GAAP GM forecast of 19.3% vs. prior consensus of 19.1%. We lower our opex forecast on ENPH’s restructuring and have updated our model to reflect the company’s Q3’16 equity raise. We now forecast 2016 EPS of -$1.04 vs. prior consensus of – $1.07 and prior ROTHe of -$1.10,” the analyst continued.

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Philip Shen has a yearly average loss of 17.1% and a 23.6% success rate. Shen has a 30.4% average loss when recommending ENPH, and is ranked #4020 out of 4173 analysts.

Out of the 5 analysts polled by TipRanks, 1 rate Enphase Energy stock a Buy, 3 rate the stock a Hold and 1 recommends a Sell. With a return potential of 31%, the stock’s consensus target price stands at $1.53.


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