Enphase Energy Stock Intrinsic Value – KeyBanc Cuts Ratings on Enphase and Sunrun, Citing Risks for Renewables in 2024

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Enphase Energy ($NASDAQ:ENPH), Inc. is a publicly traded company that designs, manufactures, and sells microinverter systems for grid-tie solar photovoltaic (PV) systems. The company is based in the United States and has offices around the world. Recently, analysts from KeyBanc have cut their ratings on Enphase and Sunrun stocks, citing potential risks for the renewable energy sector in 2024. As a result, the stocks of both companies have declined. The analysts cited a number of factors that could contribute to the potential risks, including changes in government incentives, macroeconomic factors, and competition from other renewable energy companies.

They argued that the long-term sustainability of the sector could depend on how quickly solar technology costs decrease and how well the sector can adapt to changes in the industry. As such, they believe there is an increased risk for Enphase and Sunrun in 2024. Given the potential risks and uncertainty in the sector, investors are advised to exercise caution when investing in Enphase Energy or other renewable energy stocks. Despite this caution, it is important to remember that the renewable energy sector is a dynamic one, and investments can potentially provide long-term returns with a careful strategy.

Price History

This news had an immediate effect on Enphase Energy‘s stock which opened at $120.2 and closed at $118.1, down by 3.7% from its previous closing price of 122.6. The downgrade by KeyBanc was in response to the potential risks for the renewable energy sector in 2024. They highlighted high capital expenditure and supply chain delays as possible issues that could affect the sector in the near future. The analyst at KeyBanc also noted that Sunrun and Enphase Energy currently have some of the highest levels of capex within the sector.

The downgrade of both stocks has caused investor confidence to dip, and both companies will need to find ways to increase profitability and mitigate risk to remain competitive in the sector. While it is too early to tell how the sector will fare in 2024, investors should keep a close eye on Enphase Energy and Sunrun to assess how they are managing these risks. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Enphase Energy. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Enphase Energy. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Enphase Energy. More…

Key Ratios Snapshot

Some of the financial key ratios for Enphase Energy are shown below. More…

Analysis – Enphase Energy Stock Intrinsic Value

At GoodWhale, we have conducted an analysis of ENPHASE ENERGY‘s wellbeing. Our proprietary Valuation Line indicates that the fair value of ENPHASE ENERGY share is around $296.2. Currently, however, ENPHASE ENERGY stock is being traded at $118.1 – a significant discrepancy of 60.1%. This indicates that the stock is currently significantly undervalued. More…

Peers

Founded in 2006, Enphase has shipped over 16 million microinverters, and has a presence in over 70 countries. Central Development Holdings Ltd is a Hong Kong-based investment holding company principally engaged in the provision of power generation solutions. PT Sky Energy Indonesia Tbk is an Indonesia-based company primarily engaged in the development, manufacture, sale and installation of solar photovoltaic products. United Renewable Energy Co Ltd is a Taiwan-based company principally engaged in the manufacture and sale of solar cells and modules.

– Central Development Holdings Ltd ($SEHK:00475)

As of 2022, Central Development Holdings Ltd has a market cap of 244.17M and a Return on Equity of -16.31%. The company is involved in the development and operation of commercial, residential, and industrial properties in Hong Kong.

– PT Sky Energy Indonesia Tbk ($IDX:JSKY)

Sky Energy Indonesia Tbk is a leading Indonesian energy company with a focus on the exploration and production of oil and gas. The company has a market capitalization of $105.69 billion as of 2022 and a return on equity of -22.56%. Sky Energy Indonesia Tbk is involved in the exploration, development, and production of oil and gas in Indonesia. The company has a strong presence in the Indonesian energy sector and is one of the leading producers of oil and gas in the country.

– United Renewable Energy Co Ltd ($TWSE:3576)

As of 2022, United Renewable Energy Co Ltd has a market cap of 34.16B and a Return on Equity of 2.02%. The company is engaged in the business of renewable energy, including the development, design, manufacture, sale and installation of solar photovoltaic power generation systems, wind power generation systems, biomass power generation systems and other renewable energy power generation systems.

Summary

Enphase Energy (ENPH) is a publicly traded company that specializes in home energy solutions. Recently, KeyBanc analysts cut their rating on Enphase and Sunrun due to worries over future risks with respect to the renewable energy market in 2024. This downgrade resulted in an immediate drop of ENPH stock price.

Investors should consider the various risks associated with the company’s future performance when evaluating Enphase Energy as an investment opportunity. They should also look at the history of the company, its financial health, and the competitive landscape in order to make an informed decision on whether or not to invest.