Seaport Global Securities Upgrades Enphase Energy (ENPH) to Buy, 'should continue to outshine peers'

Seaport Global Securities analyst Tom Curran upgraded Enphase Energy (NASDAQ: ENPH) from Neutral to Buy with a price target of $185.00.

The analyst comments "Europe: ENPH should remain on a robust growth trajectory through 2025. After more than doubling this year, ENPH's top line for Europe should remain in a robust uptrend, in our view. We believe ENPH will be able to achieve average revenue growth for 2024-25 of at least 35% as the company benefits from its established presence in France and Benelux; captures significant share in Germany, partly by leveraging its HEM (home energy management) system offering; and initially penetrates or introduces new products to several countries. ENPH should continue to outshine peers and command a valuation premium. In our valuation, we use 2025 as the base period, which should be the first full year of both U.S. and European strength, and grant ENPH an EV/EBITDA multiple of 15.5x. Using consensus price targets, the sell-side is awarding an average 2025 EV/EBITDA to SEDG of 14.6x and to GNRC of 11.2x. Thus, relative to their sell-side assigned mean valuation of 15.5x, we give ENPH a multiple premium of ~20%."

For an analyst ratings summary and ratings history on Enphase Energy click here. For more ratings news on Enphase Energy click here.

Shares of Enphase Energy closed at $123.97 yesterday.

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