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Enphase Energy (ENPH) shares soared over 35% on Feb. 4, after the solar power specialist reported market-beating financials for Q4 and issued a surprisingly sunny outlook for the current quarter. The upward price movement pushed ENPH’s relative strength index (14-day) well into the 70s, indicating deeply overbought conditions that often trigger a significant selloff.
Enphase stock is now trading at nearly twice its price in late November. Yet, many analysts recommend that investors stay strapped in because the solar firm is proving the inventory correction nightmare is finally in the rearview mirror.
Is There Any Further Upside Left in Enphase Stock?
While the headline numbers ($0.71 a share on $343 million in revenue) were impressive, ENPH shares remain attractive more so because of operational efficiency.
Despite a notable hit from tariffs, the company’s adjusted gross margin stood at a robust 46.1% in Q4, reinforcing its pricing power and the successful ramp of high-margin domestic manufacturing.
Additionally, the sell-through demand in the U.S. jumped 21% quarter-over-quarter to reach its highest level in over two years, indicating channel inventories have finally normalized.
Note that Enphase Energy now sits decisively above its major moving averages (50-day, 100-day, 200-day), signaling a strong uptrend that’s unlikely to subside anytime soon.
RBC Capital Upgrades ENPH Shares to ‘Outperform’
RBC Capital analysts believe Enphase shares could push higher in 2026 given the firm’s successful pivot from a microinverter play to an integrated energy powerhouse.
The clean energy company has shipped 150.1 MWh of IQ batteries and expanded its installer network to more than 22,000 pros globally.
According to the investment firm, Enphase’s ability to maintain premium pricing while scaling domestic manufacturing — now accounting for 1.31 million units — creates a defensive moat against global volatility.
All in all, the firm’s better-than-expected guidance for up to $300 million in revenue in the current quarter could trigger estimate revisions, which could drive its stock price higher over the next 12 months.
What’s the Consensus Rating on Enphase Energy
According to Barchart, consensus rating on ENPH stock sits at a “Hold,” but other Wall Street firms may follow in RBC's footsteps and upgrade the stock following its blockbuster earnings on Wednesday.
At the time of writing, price targets on Enphase Energy go as high as $67, signaling potential upside of roughly 30% from here.
