-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lower our target by $5 to $35, or 17.5x our 2026 EPS view. This is below ENPH's five-year average (~27x) given weak solar demand and regulatory headwinds. We lower our 2026 EPS by $0.31 to $2.00 and 2027's by $0.31 to $2.40. U.S. solar demand continues to worsen, with sell-through for Q1 and Q2 (expected) coming in approximately 15% below management's initial expectations for the year. We think regulatory frictions are playing a role as residential customers switch to the TPO model, and these headwinds will likely persist in the near term. However, we expect the TPO model to gain traction by 2027 as homeowners grow comfortable with the new offerings. Meanwhile, we expect improving battery demand in Europe, where activations are already improving across several markets and the Strait of Hormuz closure is amplifying resilience concerns. We also see longer-term upside from ENPH's new data center-focused platform (IQ SSTs), with revenues likely to materialize in 2028, despite the highly competitive landscape.