On Monday, Piper Sandler adjusted its outlook on Enphase Energy (NASDAQ:ENPH), reducing the price target to $113 from the previous $117, while maintaining a Neutral rating on the stock. The firm cited more conservative growth assumptions for the upcoming year as the primary reason for the adjustment.
Enphase Energy, a company that operates in the sustainable energy sector, has seen its price target revised due to a change in the growth projections for the year 2026 and beyond. The analyst from Piper Sandler indicated that the previous price target was based on more optimistic growth expectations which have now been moderated.
The new price target of $113 per share reflects a slight decrease from the former target of $117. Despite this change, Piper Sandler's valuation methodology remains consistent. The firm continues to use a 7-year Discounted Cash Flow (DCF) analysis to evaluate the company's stock value, applying an approximate 10% discount rate to forecast future cash flows.
The adjustment in the price target follows a reassessment of the long-term growth trajectory for Enphase Energy. The more conservative growth assumptions for the year 2026 and onwards suggest a tempered outlook on the company's expansion potential in the sustainable energy market.
Enphase Energy's stock will continue to be observed by investors and analysts as the market reacts to the updated financial projections and price target. Piper Sandler's revised target is based on current evaluations and does not indicate any changes to the underlying discount rate or fundamental valuation techniques used by the firm.
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