Roth Raises Target on Enphase (ENPH) 50% Following Q2 Results and Outlook
Roth Capital affirms Enphase Energy (Nasdaq: ENPH) at Buy and raises its target price from $10 to $15 following Q2 results.
Analyst Philip Shen noted strong Q2 results from Enphase, with revs of $82 million and adjusted loss of 1 cent per share comparing with consensus estimates calling for revs of $71.1 million and loss of 2 cents per share.
Shen highlights three key takeaways from the results and commentary:
- (1) US revenue growth was up 50% YoY. International growth in Q2 continued nicely in both the UK and Australian markets. The mix of international revenues maintained its share of 15%;
- (2) ENPH is enabling the development of burgeoning financing models, such as no-money-down loans and PACE. We believe the company is in discussions with as many as a dozen additional financing partners. We expect these relationships to support demand growth for ENPH microinverters; and
- (3) While we believe the release of the commercial product could serve as another meaningful source of demand ahead, the timing remains unclear.
We increase our 2014 revenue forecast to $327mn (vs. prior consensus of $289mn and prior ROTHe of $291mn) to reflect the Q2 beat and management’s outlook in H2’14. Additionally, we increase GMs to 32.8% (vs. prior consensus of 32.4% and prior ROTHe of 31.7%). This results in our revised 2014 EPS estimate of -1c (vs. prior consensus of -3c and prior ROTHe of -6c).
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Enphase Energy closed at $9.70 yesterday.