Needham & Company Upgrades Enphase Energy (ENPH) to Strong Buy

Needham & Company upgraded Enphase Energy (NASDAQ: ENPH) from Buy to Strong Buy with a price target of $20.00, saying the sell-off crates an attractive entry point.

Analyst Y. Edwin Mok commented, "We are upgrading ENPH from a Buy to a Strong Buy as we believe it is a misunderstood name with investors holding an overly simplified view of the story on market share. We believe the current stock price already reflects share risks in U.S. residential due to competition from SEDG [Buy] but underappreciates upside potential coming from several growth drivers including international, commercial, storage and service businesses. With the stock trading at 2016 EV/S of ~0.9x or ex-cash P/E of 13x off consensus estimates, well below SEDG's 2.9x/18x, we believe ENPH's low valuation suggests investors do not believe it will even hit the Street's numbers, which are currently below our projections. At the current price, we believe ENPH offers compelling value for GARP investors, and we think it is worth revisiting."

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 $10.71 yesterday.

You May Also Be Interested In

• Cleveland Research Upgrades Dynatrace Inc. (DT) to Buy, 'optimism underlying fundamentals are likely to support upside'
• HSBC Upgrades Topdanmark (TOP:DC) (TPDKY) to Hold
• Roth/MKM Previews Enphase Energy (ENPH) Earnings