Enphase Energy Inc

ENPH: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$86.00	Dfhb	Mgnbsxfy

Enphase Earnings: U.S. Weakness Drives Big Guidance Miss, but Valuation Increasingly Attractive

Brett Castelli

Jul 28, 2023

We have lowered our fair value estimate for no-moat Enphase Energy to $140 per share from $165 following second-quarter results. The primary drivers of our fair value estimate change are reduced volume and gross margin forecasts for the company's microinverters. The shares were trading lower after hours (down 13% at the time of writing) as investors continue to recalibrate their outlook amid weak demand for rooftop solar in the United States. We view the shares as fairly valued following our estimate reduction but believe they are approaching a bottom.

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