It’s no exaggeration to say that Enphase Energy (NASDAQ:ENPH), a seller of microinverter-based solar storage systems, is firing on all cylinders. The company is expanding its market presence in multiple regions and growing its revenue. Plus, an analyst just issued an eye-opening price target on ENPH stock.
Ever since the Biden administration set aside $370 billion for clean-energy initiatives as part of the Inflation Reduction Act, many investors have put solar stocks on their watch lists. However, not all solar businesses and stocks deserve your investable capital right now.
Enphase Energy is a leader in a niche market, and it checks the most important boxes for informed solar-industry investors. Best of all, Enphase’s future growth will be based on results, not hype, as the company has the sales and the capital position to justify a share-price rally in 2023.
Enphase Expands its Market Footprint
Enphase Energy is expanding in more ways than one. To solidify this point, we can start with Enphase’s capital position. At the end of 2021, the company had cash and cash equivalents totaling $119.32 million. By Dec. 31, 2022, that figure increased to a very healthy $473.24 million.
This puts Enphase Energy in a sound position to fund its future operations. Plus, Enphase demonstrated its ability to sell its products quickly. Believe it or not, the company sold 4,873,702 microinverters during 2022’s fourth quarter. This certainly helped Enphase Energy achieve record quarterly GAAP-measured revenue of $724.7 million in Q4.
In case that’s not enough good news for you, Enphase recently issued several announcements showing the company’s geographic expansion. In recent weeks, Enphase Energy expanded its IQ8 Microinverter deployments in Maryland and Pennsylvania, and began shipping its IQ Batteries in Austria.
ENPH Stock Gets a High Price Target
Thus, Enphase Energy is recording record quarterly revenue and moving its products domestically and abroad. Most likely, Janney Montgomery Scott analyst Sean Milligan was fully aware of these developments when he upgraded ENPH stock from “neutral” to “buy.”
Milligan set the fair value of Enphase Energy shares at $282. This target suggests there’s substantial upside ahead, compared to the current share price.
It’s actually an attainable target, as ENPH stock has broken above $300 on more than one occasion. Besides, Milligan observed that “recent commentary from publicly-traded residential installers has been bullish.” So, Enphase Energy should be able to deliver strong sales results and shareholder value during the coming quarters.
The Outlook for ENPH Stock Is Bright and Sunny
There’s certainly no guarantee that that Enphase Energy share price will reach Milligan’s fair-value target of $282. However, Enphase’s fundamentals are rock-solid and the company is growing in all the right ways.
Sure, there are other publicly traded solar companies out there. Yet, sensible investors should focus on industry leaders like Enphase Energy. As the company rakes in robust revenue and expands its presence in multiple regional markets, the bullish thesis for ENPH stock is only growing stronger.
On the date of publication, Louis Navellier had a long position in ENPH. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.