Enphase Energy Inc (ENPH) has lost about 20% in just over two months but a Guggenheim analyst warns it has room to sink further.
Enphase stock could tank another 15%
Joseph Osha downgraded the solar stock this morning to “sell” and lowered his price target to $92 which signals another 15% downside. He turned dovish on Enphase stock after its management cited weaker demand for solar solutions in the United States and reported disappointing earnings for the first quarter. More importantly, the Nasdaq-listed firm expects weakness to persist considering its guidance for the current quarter failed to impress as well. Note that $ENPH does not pay a dividend either in writing.
Are Enphase shares currently overvalued?
Joseph Osha sees Enphase stock as overvalued following its Q1 earnings and muted guidance. His research note reads:
As the process of excess channel inventory draw down proceeds, we think it’s going to become apparent that the market is overvaluing any reasonable recovery scenario for $ENPH business.
It is worth mentioning here that shares of the energy technology company based out of Fremont, California have failed to meaningfully break above their 200-day MA since the start of 2024. 
Other than Guggenheim, analysts at Jefferies also downgraded Enphase today to “hold”. Their $111 price objective hardly suggests any upside from here. More By This Author:Visa Blows Past Expectations In Its Fiscal Q2 Is Roku Stock Worth Owning Ahead Of Earnings? SAP Says It’s ‘Off To A Great Start In 2024’ After Q1 Earnings
