What Happened?
Shares of home energy technology company Enphase (NASDAQ: ENPH) jumped 3.5% in the morning session after Jefferies upgraded the stock to Hold from Underperform and raised its price target to $36 from $28.
The upgrade provided a direct boost to the solar technology company's shares. The positive move was also supported by a backdrop of favorable news for the broader solar and renewable energy sector. Reports indicated that India installed 14.3GW of new utility-scale solar capacity in the first half of 2025, a 49% increase year-on-year. In the U.S., New Jersey's governor signed new legislation aimed at increasing energy storage and community solar projects. Additionally, fellow solar company FTC Solar announced a significant 1GW tracker supply agreement, signaling robust industry demand.
After the initial pop the shares cooled down to $38.60, up 0.9% from previous close.
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What Is The Market Telling Us
Enphase’s shares are extremely volatile and have had 47 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 4 days ago when the stock gained 10.8% on the news that Federal Reserve Chair Jerome Powell hinted that interest rate cuts could be coming soon.
The broader market jumped after Federal Reserve Chair Jerome Powell hinted that policymakers could soon be cutting interest rates. Companies that benefit from lower borrowing costs, including solar power providers like Enphase, saw their shares advance as rate cuts can make financing solar installations more affordable for customers.
Enphase is down 45.9% since the beginning of the year, and at $38.60 per share, it is trading 68.8% below its 52-week high of $123.65 from August 2024. Investors who bought $1,000 worth of Enphase’s shares 5 years ago would now be looking at an investment worth $513.02.
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