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Enphase, Petersen-Dean Ink Deal to Cater to US Solar Market

Zacks Equity Research

Enphase Energy Inc. ENPH recently inked a strategic deal with Petersen-Dean for supplying its inverters and battery storage systems. Notably, Petersen-Dean picked Enphase for its all-in-one smart energy system consisting of solar microinverters, battery storage, and energy management.

The deal reflects Enphase’s efforts to enhance its footprint in the rapidly growing U.S. solar market.

Benefits of the Deal

Petersen-Dean has more than a million solar roofs under its belt and works directly with more than 400 home builders and general contractors. Considering this, the latest deal will enable Enphase to significantly expand its customer base across the U.S. solar market.

With solar energy projected to comprise 20% of all U.S. electricity generation by 2030, per the latest forecast made by the Solar Energy Industries Association (SEIA), the deal seems is likely to be a profitable project for Enphase.

Growing Strategic Partnerships

In recent times, Enphase inked strategic supply deals with other solar players in the United States, which, in turn, should expand its revenue generation capacity. These partnerships also reflect the growing demand for Enphase’s microinverters and battery storage systems.

For instance, in November 2019, Enphase announced its strategic partnership with Sunrun RUN, per which, the former will supply its seventh-generation IQ microinverters to Sunrun.  

Earlier, in the third quarter of 2019, the company shipped significant volumes of IQ 7AS microinverters to SunPower SPWR, which is expected to integrate IQ7AS into SunPower’s 66-cell Next Generation Technology (NGT) DC modules.

Enphase’s latest supply agreement with Petersen-Dean seems to be yet another move made by the microinverter-supplier to fortify its footprint in the growing residential solar market in the United States. Notably, in the third quarter of 2019, the U.S. residential solar market attained record highs with 712 megawatts of solar installed, according to the latest U.S. Solar Market Insight report from Wood Mackenzie Power & Renewables and the SEIA.

Considering such growth patterns, we expect Enphase to sign more such contracts, particularly in the U.S. residential solar market.

Price Movement & Zacks Rank

In a year’s time, shares of Enphase have gained a staggering 380.2% compared with its industry’s growth of 66.9%.

 

 

Enphase currently has a Zacks Rank #3 (Hold). A similar top ranked stock in the same sector is Covanta Holding CVA. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Covanta’s long-term growth estimate currently stands at 15%. The company delivered average positive earnings surprise of 37.03% in the last four quarters.

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Enphase Energy, Inc. (ENPH) : Free Stock Analysis Report
 
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