Enphase Energy downgraded to Neutral at Guggenheim on valuation (NASDAQ: ENPH)
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Enphase Energy (NASDAQ:ENPH) on Friday was downgraded to Neutral from Buy at Guggenheim Partners after the solar company surged. Enphase is up 55% in three months, contrasting with a 3% drop in the S&P 500 Stock Index, limiting the possibility of to achieve similar returns, the investment banker said.
“Enphase is one of the fastest growing and best managed companies we cover, and our updated stance does not reflect a negative assessment of the quality of Enphase’s business,” said Joseph Osha , analyst at Guggenheim, said in a research note. “That said, we do see a company that looks pretty overvalued even considering the company’s growth prospects.”
Enphase on Friday fell 3.7% to close at $305.70 per share.
Shares of the company in July rose to new highs after the company reported second-quarter adjusted earnings that nearly doubled from a year earlier to $0.54 per share. Quarterly revenue grew 68% year-over-year to a company record of $530.2 million.
Looking for an Alpha, JR Research collaborator with a Sell rating on Enphase (ENPH) because of its valuation. Screenwriter Keith Williams reviews Enphase (ENPH) as a Buy on strong management.
