Enphase Energy downgraded to neutral at Oppenheimer on uncertainty in solar industry

Enphase Energy Inc.
ENPH,
-14.65%
drew a downgrade to perform from outperform by Oppenheimer analyst Colin Rusch , who cited “industry uncertainty.” The solar power micro-converter maker warned it expects fourth-quarter revenue of $300 million to $350 million, well below the latest FactSet consensus estimate of $447.5 million. Rusch said the company missed its third-quarter sales estimate due to weaker demand, while cost reductions are slower than expected. “Even with higher electricity prices as a tailwind, we believe consumer concerns on the economy and prospect for persistently elevated interest rates suggest that a spring recovery in demand is not yet certain,” Rusch said. Enphase Energy’s stock was down 15.4% in premarket trading.