TYN(SZ:000591)2024-06-24 13:29Investment Rating - The report assigns a "Buy" rating to Enphase Energy Inc. (ENPH) with a target price of $106.67 and First Solar Inc. (FSLR) with a target price of $258.87 [15]. Core Insights - The report highlights mixed signals regarding solar demand in Europe, with residential demand appearing weaker than expected due to political and regulatory uncertainties, while commercial and utility-scale segments show more positive trends [3]. - In contrast, the U.S. residential solar market is showing signs of improvement, with sequential trends improving significantly since February/March 2024, particularly in California [4]. - The potential for domestic content requirements is expected to positively impact U.S. residential solar volume growth starting in Q4 2024, with Enphase Energy positioned favorably due to its U.S.-manufactured products [6]. - Utility-scale projects in the U.S. are still facing delays, primarily due to domestic content requirements and uncertainty surrounding anti-dumping and countervailing duties [4]. - Module pricing in the U.S. is on the rise, driven by uncertainties related to tariffs, with price increases ranging from $0.05 to $0.10 per watt depending on the sourcing jurisdiction [5][7]. Summary by Sections European Market Insights - Demand in Europe remains uncertain, with residential solar demand weaker than expected due to various factors, while commercial and utility-scale segments are more constructive [3]. U.S. Market Developments - Positive trends are emerging in the U.S. residential solar market, with improvements noted in inventory levels and market dynamics [4]. - Domestic content requirements are expected to drive volume growth in the U.S. residential solar sector starting in Q4 2024, benefiting companies like Enphase Energy [6]. Pricing and Supply Chain - Utility-scale projects in the U.S. are experiencing pushouts, but the overall backlog remains healthy [4]. - Module pricing is increasing in the U.S. due to tariff uncertainties, with suppliers raising prices to mitigate risks [5][7].