Jefferies analysts reduced their price target for Enphase Energy (NASDAQ:ENPH) from $61 to $57, maintaining an Underperform rating on the stock. The decision reflects a cautious outlook for the company amid ongoing market challenges and competitive pressures.
While the U.S. residential market is showing signs of improvement, it is recovering from a low base, and competition from Tesla remains a significant headwind. Meanwhile, the analysts mentioned that recovery in the European market has yet to materialize, adding to the company’s near-term hurdles. Although upcoming product launches provide some optimism, the overall market environment and Enphase’s position within it remain difficult.
The analysts also highlighted expectations for downward revisions to 2025 estimates, driven by these market dynamics. As a result, Jefferies adjusted its revenue forecast for 2025, now over 8% below consensus estimates. This revision underpins the reduced price target and reinforces the view that Enphase faces significant near-term challenges despite its longer-term potential.