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Investment Thesis We initiate Coverage of Enphase Energy (ENPH) with an Overweight Rating and a $145 Target Price. Enphase Energy is the market leader in module level power electronics (MLPE), commanding a 55% share of the US residential solar market. We believe the market underappreciates Enphase’s ability to serve both dealers and consumers with its strong hardware reliability, customer support and expanding energy management solutions. Initiation in a nutshell Highlights: Market leader in module level power electronics (MLPE), commanding a 55% share of the US residential solar market. Expanded product offering to include inverter, battery, EV charger and energy management software. Areas of focus: Return to growth and profitability amidst channel destocking in US and Europe, driven by policy changes in key markets such as California and Netherlands. Catalysts: Resumption of growth expected in 3Q24. Valuation: $145 Target Price is based on a DCF that accounts for 7% revenue growth CA
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