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• Enphase reported disappointing earnings for its fiscal Q1 last night.
• Guggenheim analyst warns the solar stock could tank further from here.
• Enphase stock is down about 20% versus its year-to-date high at writing.

Enphase Energy Inc (ENPH) has lost about 20% in just over two months but a Guggenheim analyst warns it has room to sink further. 

Enphase stock could tank another 15%

Joseph Osha downgraded the solar stock this morning to “sell” and lowered his price target to $92 which signals another 15% downside. 

He turned dovish on Enphase stock after its management cited weaker demand for solar solutions in the United States and reported disappointing earnings for the first quarter. 

More importantly, the Nasdaq-listed firm expects weakness to persist considering its guidance for the current quarter failed to impress as well. 

Note that $ENPH does not pay a dividend either in writing. 

Are Enphase shares currently overvalued?

Joseph Osha sees Enphase stock as overvalued following its Q1 earnings and muted guidance. His research note reads:

As the process of excess channel inventory draw down proceeds, we think it’s going to become apparent that the market is overvaluing any reasonable recovery scenario for $ENPH business.

It is worth mentioning here that shares of the energy technology company based out of Fremont, California have failed to meaningfully break above their 200-day MA since the start of 2024. 

Other than Guggenheim, analysts at Jefferies also downgraded Enphase today to “hold”. Their $111 price objective hardly suggests any upside from here. 

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