Join        Login             Stock Quote

Enphase Energy (ENPH) Initiated As 'Buy' By Deutsche Bank, $10 PT

 April 30, 2012 01:45 PM

(By Balaseshan) Deutsche Bank analyst Vishal Shah initiated coverage of micro-inverter manufacturer Enphase Energy Inc. (NASDAQ:ENPH) with a "Buy" rating and $10 price target.

Enphase is poised to benefit from the rapid growth of micro-inverters in the grid parity era as the technology becomes mainstream due to superior advantages over traditional inverters and faster growth of residential/small commercial solar markets (currently the sweet spot of micro inverters).

The company has a defensible technology position and has a robust cost reduction roadmap. Shah expects execution on share gains and cost reduction to act as next potential catalysts for shares.

Micro-inverters offer several advantages over traditional central inverters - ease of installation, increased system optimization, higher warranty, lower system downtime during maintenance and overall increased reliability. The benefits of Enphase microinverters are evident in the company's market share gains (about 30%) in less than 2 years.

Enphase is well positioned to benefit from increased competition in both upstream and downstream segments of the solar supply chain.

Not only that, the company is actually enabling installers with no electrical experience/handling of high voltage DC lines to enter the downstream market thereby increasing competition and driving additional pressure in the overall system price (more important parameter for grid parity considering BoS costs are currently 3-4 times module costs in several markets worldwide due to less competition in the downstream supply chain).

Shah said Enphase is also a pure play downstream solar name with direct exposure to markets where units are actually growing and without additional accounting/balance sheet issues that come along with most other downstream solar names.

The brokerage established its 2012 loss per share estimate for Enphase Energy of $1.17 and its 2013 estimate of $0.51.

ENPH is trading up 7.76% at $7.27 on Monday.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageLong-term Relationships and Credit Scores

Unlike many commentators, I tend to think credit scores are a good read on...

article imageIn Defense Of Rolling Return Charts

Robeco’s Lukas Daalder has a bit of an issue with rolling-performance graphics. Bashing a recent chart of read on...

article imageThe S&P 500’s Worrisome Downturn In Drawdown

Last Friday I reviewed some of the bearish signals that were casting dark shadows across the US stock read on...

article imageADP: Private-Sector Employment Rises A Solid 200k In September

The pace of growth for private-sector employment picked up in September, according to this morning’s ADP read on...

Popular Articles

Daily Sector Scan
Partner Center

Related Articles:

Recent Articles by Balaseshan
More Articles on: Oils/Energy

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.