Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 22 Jun, 26 | ENPH | Buy | USD 52.28 | USD 55.0 | USD 57.5 | 1 day | Closed |
9.72%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Enphase Energy, Inc., together with its subsidiaries, designs, develops, manufactures, and sells home energy solutions for the solar photovoltaic industry in the United States and internationally. The company offers semiconductor-based microinverter, which converts energy at the individual solar module level and combines with its proprietary networking and software technologies to provide energy monitoring and control. It also provides microinverter units and related accessories, an IQ gateway; IQ batteries; the cloud-based Enlighten monitoring service; storage solutions; and electric vehicle charging solutions, as well as design, proposal, permitting, and lead generation services. The company sells its solutions to solar distributors; and directly to large installers, original equipment manufacturers, strategic partners, and homeowners, as well as through its legacy product upgrade program or online store. Enphase Energy, Inc. was incorporated in 2006 and is headquartered in Fremont, California.
Increase in Non-GAAP Net Income Q1FY26 USD 62.3 Mn vs Q1FY25 USD 89.2 Mn adjusted profitability remained positive despite challenging market conditions
Increase in Free Cash Flow Q1FY26 USD 83.0 Mn vs Q1FY25 USD 33.8 Mn
Decline in GAAP Gross Margin Q1FY26 35.5% vs Q1FY25 47.2%
Decline in Revenue Q1FY26 USD 282.9 Mn vs Q1FY25 USD 356.1 Mn
Enphase Energy faces risks from fluctuating residential solar demand, changes in tax credits and incentive programs, tariff-related cost pressures, supply chain disruptions, and execution risks associated with expanding into new commercial, energy management, EV, and AI data center markets
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 52.28 | 47.2 | 55.0 | 57.5 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Revenue Pressure from U.S. Market Weakness: Enphase Energy reported Q1FY26 revenue of USD 282.9 million, impacted by weaker U.S. residential solar demand following the expiration of the federal residential clean energy tax credit and seasonal factors. However, the company continued to benefit from safe harbor shipments and stronger European demand, which partially offset domestic softness.
Margin Resilience and Cost Discipline: Despite tariff-related headwinds, Enphase maintained a non-GAAP gross margin of 43.9% in Q1FY26. The company continued to manage operating expenses effectively, generating non-GAAP operating income of USD 47.3 million. Lower tariff impacts compared to the previous quarter also supported profitability and demonstrated disciplined operational execution.
Strong Cash Generation and Balance Sheet Strength: The company generated operating cash flow of USD 102.9 million and free cash flow of USD 83.0 million during Q1FY26. Enphase ended the quarter with USD 930.6 million in cash, cash equivalents, and marketable securities, providing significant financial flexibility despite the repayment of USD 632.5 million of convertible senior notes.
Product Innovation and Commercial Expansion: Enphase continued expanding its commercial and energy management portfolio through shipments of commercial microinverters, battery solutions, EV charging technologies, and energy management software. The company also advanced its next-generation product roadmap, targeting residential, commercial, and grid-scale energy applications to broaden its addressable market.
AI Data Center Opportunity and Long-Term Growth: A major strategic highlight was the launch of the IQ Solid-State Transformer (IQ SST) platform designed for next-generation AI data centers. Leveraging proprietary ASIC and GaN-based technologies, the platform is intended to support emerging 800V DC AI infrastructure, creating a potential new growth avenue beyond the company’s traditional solar and storage markets.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given to Enphase Energy, Inc. (NASDAQ: ENPH) at the closing market price of USD 52.28, as on June 18,2026.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Technology Industry: Solar
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| ENPH Enphase Energy Inc |
-2.11 5.08% | 39.46 | 136.61 | 18.32 | 6.79 | 9.24 | 6.51 | 53.17 |
| FSLR First Solar Inc |
-6.68 3.15% | 205.31 | 13.14 | 11.49 | 3.84 | 2.17 | 3.54 | 8.58 |
| NXT Nextracker Inc. Class A Common Stock |
-2.87 2.78% | 100.23 | 16.44 | 12.44 | 2.71 | 15.50 | 2.46 | 15.56 |
| XISHY Xinyi Solar Holdings Limited |
- -% | 4.69 | 11.55 | 14.93 | 0.22 | 1.24 | 0.24 | 1.12 |
| GCPEF GCL-Poly Energy Holdings Limited |
- -% | 0.09 | - | 3.12 | 0.34 | 0.76 | 3.38 | 4.02 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on June 22, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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