Why This Enphase Energy Analyst Is No Longer Bearish

Enphase Energy Inc.'s (NASDAQ:ENPH) stock has significantly underperformed the broader market, and while the company's growth remains uncertain, there are some "potential future upside catalysts," according to KeyBanc Capital Markets.

The Enphase Energy Analyst: Analyst Sophie Karp upgraded the rating from Underweight to Sector Weight.

The Enphase Energy Thesis: The stock lost 53% in 2025 versus the S&P 500's 16% gain, Karp said in the upgrade note.

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After the selloff, the bear thesis on Enphase Energy is "baked into the shares," he added.

Although the long-term growth outlook remains uncertain, as management finalizes and implements a new business strategy, Enphase Energy's lack of debt and high free cash flow yield provide sufficient near-term support, the analyst stated.

"We expect channel de-stocking to finish into early 2026, with conditions normalizing in 2H26, supported by declining interest rates, power-price trends and better access to financing options," he further wrote.

ENPH Price Action: Enphase Energy shares were up 1.57% at $34.27 at the time of publication on Monday, according to Benzinga Pro data.

Enphase Energy operates in the volatile semiconductor sector, with a market cap of $4.49 billion and a P/E ratio of approximately 23.1, indicating a premium valuation relative to some peers.

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• Enphase Climbs Friday With Shares Still Near The Bottom Of Their Range

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