What Happened?
Shares of home energy technology company Enphase (NASDAQ: ENPH) jumped 5.4% in the morning session after Goldman Sachs raised its rating on the stock from Sell to Neutral, maintaining a price target of $29.00.
The upgrade followed a period where Enphase's shares had declined 23% since Goldman Sachs placed the company on its Sell list. The investment bank noted that it believed the company's management had reset expectations lower. Goldman anticipated a revenue low point in the first quarter of 2026, with several growth drivers expected to support results through the remainder of that year and beyond.
Is now the time to buy Enphase? Access our full analysis report here.
What Is The Market Telling Us
Enphase’s shares are extremely volatile and have had 40 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 8 days ago when the stock gained 5.1% on the news that the Federal Reserve lowered its benchmark interest rate by a quarter-percentage point, signaling a more accommodative monetary policy.
This dovish action, combined with highly accommodating signals from Chair Jerome Powell and the Federal Open Market Committee (FOMC), sent the Dow Jones Industrial Average and S&P 500 surging. The market's bullish reaction was rooted in several key takeaways from the Fed's announcement. Most significantly, the central bank confirmed it would begin expanding its balance sheet by buying short-term bonds, a move that injects critical liquidity and lowers short-term Treasury yields. Furthermore, the Fed signaled a shift in priority by removing language that described the labor market as "remaining low," suggesting it would be more focused on supporting economic growth. While the Fed's official forecast projected only one cut for the next year, traders immediately priced in the expectation of more aggressive easing, banking on at least two rate reductions. This widespread anticipation of sustained, low borrowing costs and the virtual certainty that rate hikes would be off the table boosted corporate valuations and created powerful momentum for the equity market rally.
Enphase is down 53.3% since the beginning of the year, and at $33.32 per share, it is trading 54.7% below its 52-week high of $73.51 from January 2025. Investors who bought $1,000 worth of Enphase’s shares 5 years ago would now be looking at an investment worth $202.66.
While Wall Street chases Nvidia at all-time highs, an under-the-radar semiconductor supplier is dominating a critical AI component these giants can’t build without. Click here to access our full research report.
