Enphase Energy, Inc.
ENPH
recently revealed that it enhanced its manufacturing capacity in Romania by collaborating with Flex, thus further strengthening its alliance with the global diversified manufacturer. As part of the agreement, Enphase’s microinverters will be manufactured at Flex’s factory in Timisoara, Romania, which is expected to commence at the beginning of the first quarter of 2023.
Benefits for Enphase
Enphase, which already enjoys a strong presence in Europe’s solar market, is looking to further solidify its position in this region through a manufacturing facility, which will enable the company to further bolster its revenues. In this context, the recent collaboration with Flex is likely to boost its manufacturing capacity in the European market, thus enabling the company to capitalize on the growing demand for solar and battery storage amid the rising energy prices.
The deal will further assist Enphase in the timely delivery of its products to customers in Europe. Hence, it is imperative to mention thatthe European Union (EU) recorded growth of 34% year over year to 25.9 gigawatts (GW) in its photovoltaic (PV) capacity addition in 2021, per the latest report released by SolarPower Europe. The report suggests that the EU will reach a cumulative PV capacity of 327.6 GW by 2025 and 672 GW by 2030.
Such an intriguing and upbeat growth trend indicates solid prospects for solar players like ENPH. The recent expansion in manufacturing capacity by Enphase will enable the company to tap the growth of the lucrative European solar market.
Peer Moves
Considering the expanding market size of the European solar market, there are sizeable opportunities for solar playersin the industry to capitalize on growth trends. In this context, solar majors who have already carved out a position in the European solar market are
ReneSola
SOL
,
Canadian Solar
CSIQ
and
SunPower
SPWR
.
In Europe, ReneSola is engaged in project developments across Poland, Hungary, Spain, France, Germany, the United Kingdom and Italy. Beyond these countries, ReneSola is actively pursuing other emerging markets in Europe, including the Czech Republic. In March 2022, SOL sold its U.K.-based 24-megawatt (MW) solar-plus-storage project, Ducklington, to Innova.
The Zacks Consensus Estimate for ReneSola’s 2022 sales indicates an improvement of 39.5% over the prior-year reported figure. ReneSola’s shares have rallied 2.9% in the past six months.
In March 2022, Canadian Solar became the largest solar developer in Italy after signing the 84 Megawatt-peak (MWP) 10-year power purchase agreement with Axpo Italia.
The Zacks Consensus Estimate for Canadian Solar’s 2022 earnings indicates a growth rate of 192.9% from the prior-year reported figure. CSIQ shares have rallied 19.3% in the past month.
SunPower has its largest solar plant in Italy, the Montalto di Castro solar PV power plant. The Montalto di Castro Solar Project is a 51.4 MW solar PV power project that produces enough power for 13,000 homes and avoids 22,000 tons of CO2 emissions per year.
The Zacks Consensus Estimate for SunPower’s 2022 earnings suggests a growth rate of a solid 628.6% from the prior-year reported figure. SPWR has returned 0.8% to its investors in the past six months.
Price Movement
In the past year, shares of Enphase Energy have rallied 37% against the
industry
’s decline of 17.3%.
Image Source: Zacks Investment Research
Zacks Rank
Enphase Energy currently carries a Zacks Rank #3 (Hold). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
.
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