Enphase Energy, Inc. (ENPH), valued at a market cap of $6 billion, is a global energy technology leader known for its innovative solar microinverters, energy storage solutions, and smart energy management systems. Based in Fremont, California, Enphase revolutionized the solar industry by introducing microinverter technology, which converts direct current (DC) to alternating current (AC) at the individual solar panel level, boosting performance, safety, and reliability over traditional inverter systems.

Shares of ENPH have fallen behind the broader market over the past 52 weeks. ENPH has declined 61.1% over this time frame, while the broader S&P 500 Index ($SPX) has gained 10.2%. In 2025, ENPH stock declined 35.3%, compared to SPX's 3.9% YTD dip.

Narrowing the focus, ENPH stock has also underperformed the Invesco Solar ETF’s (TAN) 32.8% fall over the past year and 12.9% drop in 2025. 

Enphase Energy’s shares fell 14.2% on Apr. 22, despite a broader market rally, after the company missed Q1 estimates and issued weaker-than-expected Q2 guidance. While Enphase reported strong year-over-year growth, 35% in revenue and nearly double the EPS, results fell short of analyst expectations. The company also warned of worsening gross margin pressure due to tariffs, projecting a 2% hit in Q2 and up to 8% in the second half of the year. Although Enphase benefits significantly from the Inflation Reduction Act (IRA) through margin boosts and tax breaks, political uncertainty and a tough macro environment weigh on its outlook. 

For FY2025, which ends in December, analysts expect ENPH's EPS to decline 15.8% year-over-year to $1.17 per share. The company's earnings surprise history is mixed. It beat the consensus estimates in one of the last four quarters while missing on three other occasions. 

Among the 36 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 15 “Strong Buy” ratings, 14 “Holds,” two “Moderate Sells,” and five “Strong Sells.”

This configuration is more bullish than three months ago, with 14 “Strong Buy” ratings on the stock.

On Apr. 25, Barclays plc (BCS) lowered its price target on Enphase Energy from $58 to $51 following the company's Q1 earnings miss but maintained an “Overweight” rating. The firm noted that Enphase plans to restore battery margins by adjusting its supply chain, anticipating a 12% increase in average sales prices, a 20% rise in cell costs due to sourcing outside China to avoid steep tariffs, and a 10% uptick in other material costs. Barclays added that Enphase has likely been working to diversify its cell supply since late last year.

The mean price target of $61.03 represents a premium of 37.4% to ENPH's current levels. The Street-high price target of $125 implies a solid potential upside of 181.4% from the current price levels.