Enphase Energy (ENPH, Financial) recently experienced a reduction in its price target from $90 to $64 by Northland. Despite maintaining an Outperform rating, this adjustment follows the company's failure to meet consensus expectations and a revised downward guidance for the first quarter.
The primary factor attributed to the earnings shortfall was a decrease in gross margin. Additionally, the company is anticipated to face peak impacts from tariffs by the third quarter of 2025, though these are projected to be resolved by the second quarter of 2026 as Enphase reorganizes its supply chain strategy.
On a positive note, the analyst highlighted the company's robust performance in various areas. Enphase is making strides through the introduction of new products and the expansion of its geographical reach, which are expected to counterbalance some of the adverse effects of the tariffs.
