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Enphase Energy, Inc. (ENPH) Message Board

  • gorskidcg gorskidcg Dec 9, 2012 5:23 PM Flag

    Merrill Lynch price objective $15.50

    BUY is reitterated, PO $15.50 maintained:
    Management hits the road with backing of results
    With several consecutive quarters of strong operating performance in the books,
    Enphase’s management team hit the road with us in Boston last week. Our key
    takeaway is that the company’s greatest period of value creation still lies ahead,
    as ENPH continues to control expenses on the road to profitability while gaining
    share in the fast-growing distributed solar generation market. Our model shows
    breakeven performance by Q3 2013. We maintain our Buy rating and $15.50 PO.
    Value proposition and manufacturing model key to success
    Continued gross margin expansion is key to the Enphase story in our view. The
    company’s pricing premium remains intact, reflective of the reduced cost the
    system offers to installers, and the superior energy production the system offers
    owners. In our view, ENPH’s low fixed-cost manufacturing model is a key
    differentiator among solar players, allowing the company to adequately meet
    demand levels while leveraging the highly efficient contract manufacturing supply
    chain. As a result, we think ENPH deserves more credit for being able to sustain
    and add to its 27% gross margin.

    Sentiment: Strong Buy

1.18-0.02(-1.67%)Sep 30 4:00 PMEDT