Why Clouds Are Hanging on Enphase Energy Stock This Week

Core Insights - Enphase Energy reported Q3 2025 revenue of $410.4 million and adjusted EPS of $0.90, exceeding analysts' estimates [1] - Despite a year-over-year sales growth of 7.8%, management's bearish outlook for Q1 2026 has led to a decline in stock value [4][6] - Analysts have revised their price targets downward, contributing to the stock's decline [5][7] Financial Performance - Enphase's revenue increased to its highest level in two years, with Q3 2025 sales surpassing previous quarters [4][6] - The company anticipates Q1 2026 revenue to be around $250 million, down from $356.1 million in Q1 2025 [4] Market Reaction - Enphase Energy's stock has decreased by 16.9% from the end of last Friday's trading session [2] - The stock is currently trading at 8.9 times operating cash flow, significantly lower than its five-year average of 32.3 [5] Analyst Sentiment - Susquehanna, RBC Capital, and JPMorgan Chase have all lowered their price targets for Enphase Energy [7] - The stock is currently viewed as a potential buying opportunity despite the anticipated slowdown [5]