How many companies on the Nasdaq exchange focus on selling microinverter-based solar storage systems? Not many, and Enphase Energy (NASDAQ:ENPH) belongs at the top of that very short list. If you’re ready to gain prime exposure to the international solar industry, you won’t do much better than ENPH stock.
Governments around the world are enacting clean energy initiatives. It’s fine to have exposure to conventional fossil fuel companies. If you’re under-invested in well-positioned solar businesses, however, you could end up leaving significant money on the table in 2023.
Thus, you have a rare opportunity with Enphase Energy. The company is an industry leader with its intelligent, semiconductor-based microinverter systems. So, let’s see how Enphase Energy’s investors could potentially benefit from a buy-and-hold position.
What’s Happening with ENPH Stock?
It’s not too late to start accumulating shares, as ENPH stock has declined from its peak price of $339.92. In other words, if you started a share position now, you’d be buying at a discount.
Furthermore, you’d be positioned to benefit from the government’s financial support of clean energy. Goldman Sachs analyst Brian Lee sees Enphase Energy as “potentially being a direct and near-term beneficiary of manufacturing credits” provided by the Inflation Reduction Act (IRA).
The IRA “includes domestic manufacturing credits for solar microinverters ($0.11/w),” Lee observes. And, assuming Enphase Energy was to establish U.S. capacity, the company “would be eligible to capture the full amount of these credits, according to management.”
With that in mind, Lee assigned a “buy” rating to ENPH stock with an optimistic $379 price target.
Enphase Energy Is Expanding Domestically and Globally
Enphase Energy is growing its operations rapidly. For instance, the company recently expanded its IQ8 microinverter deployments in New Hampshire, as well as in Puerto Rico.
Yet, Enphase’s expansion isn’t limited to the 50 U.S. states and surrounding territories. Impressively, Enphase Energy reported an increase in deployments of IQ8 microinverter-powered residential solar energy systems in the Netherlands.
Additionally, Enphase just disclosed a partnership with Enerix, a German company that specialized in decentralized energy systems. Together, the two companies will expand Enphase Energy’s product offerings in Europe, especially in Germany and Austria.
Enerix is an ideal partner for this European expansion. The company “has more than 100 franchise partners in Germany and Austria and installed more than 10,000 solar systems in 2022,” according to the press release.
What You Can Do Now
If you don’t have enough exposure to the global solar market, here’s an opportunity to consider taking advantage of. ENPH stock is down from its peak price, and Enphase Energy is growing its presence domestically and globally.
Besides, the IRA should provide a tailwind to America’s solar industry in general, and to Enphase Energy in particular. Therefore, you’re invited to take a close look at Enphase Energy while the company’s shares are reasonably priced, as they could gain significant value this year.
— Louis Navellier
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Source: Investor Place