Enphase Energy: Still Buying As International Markets Outperform The Domestic Market

Summary

• The US remains a weak market for the company as sell-through was weaker than expected, as a result of high interest rates, leading to an elevated inventory position.
• However, international markets were strong, particularly in Europe and Australia, as growth was robust and sell-through continued to improve.
• Guidance was also lighter than expected as management looks to reduce the excess inventory by the end of 3Q23.
• Commentary on Enphase market share suggests it remains high and stable, suggesting that the company is maintaining its leadership competitive position.
• I reiterate my price targets for Enphase as my assumptions and forecasts remain conservative.
• This idea was discussed in more depth with members of my private investing community, Outperforming the Market. Learn More »

Sundry Photography

Analyst’s Disclosure:I/we have a beneficial long position in the shares of ENPH either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.