Enphase Energy Soars on Positive Analyst Comments

The analysts react to a negative report from a short-seller accusing Enphase of fraudulent accounting practices.
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Enphase Energy  (ENPH) - Get Report shares soared Thursday as Wall Street analysts offered positive comments after a negative report from a short-seller depressed the solar energy company’s stock.

The report from Prescience Point alleged fraudulent accounting practices.

As for the bullish commentaries Thursday, J.P. Morgan analyst Mark Strouse, who has an overweight rating on the stock, said Enphase Energy “seemed dismissive” of the concerns, according to Bloomberg.

Enphase Energy said it’s not “stuffing channels with inventory and that unit shipments have exceeded unit installations,” he said.

Cowen analyst Jeffrey Osborne also has an outperform rating for Enphase Energy. He said the stock’s 26% plunge Wednesday on the negative report represents a buying opportunity.

Enphase’s product cycle is “working to drive down cost,” he said. And the Prescience Point report has a “number of inaccuracies.”

Johnson Rice analyst Martin Mally upgraded Enphase to buy from accumulate. He sees strength in operating cash flow generation, its new product pipeline, and international growth,

Roth analyst Philip Shen has a buy rating on Enphase. He labeled the report as “specious,” according to Bloomberg. He too is impressed with the company’s cash generation and sees no indication that it overstated revenue and profit margins.

On his April 7 "Mad Money" show, Jim Cramer said, "I like Enphase and solar power."

Enphase shares recently traded at $45.24, up 15.88%. The stock has soared 54% over the last three months, but it has slid 32% since May 19.

The Russell 2000 has climbed 29% over the last three months.