2024-04-11 16:00:00 ET
Summary
- Enphase Energy remains a Buy for investors looking to capitalize on its prospective commercial success and inherent asset-light strategy.
- With residential installations only comprising over 20% of the overall capacity installed in the US, it is unsurprising that the management is looking toward the commercial market to drive growth.
- The potential pivot by the Fed is likely to boost residential solar installations over the next few years as well.
- Combined with ENPH's robust profit margins and healthy balance sheet, the company remains well capitalized to weather the near-term uncertainties.
- With an excellent upside potential, the stock offers a relatively attractive risk/ reward ratio, despite the inherent premium observed in its valuations and the elevated short interest.
We previously covered Enphase Energy, Inc. ( ENPH ) in January 2024, discussing the early signs of optimistic reversal in its investment story, with the Fed's potential pivot in Q1'24 likely to bring forth expanded residential solar installations....
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Enphase: Commercial Entrance, Asset Light Strategy May Trigger Its Eventual Recovery