Analyst Review – 01/23/24

Upgrades

$ENPH – Enphase Energy Inc.
Recent News
Enphase Energy, a prominent solar microinverter manufacturer, received a substantial upgrade from Truist Securities, changing its stock rating from Hold to Buy and increasing its price target from $85 to $145. Despite a 47% drop in its share price since December 2022, Enphase has shown promising earnings per share expectations, bolstering its investment appeal. This upgrade, along with positive analyst reviews, suggests that Enphase’s stock might be undervalued. The company’s efficient and reliable microinverter technology contributes to its growth prospects. On January 23, 2024, ENPH stock witnessed a notable rise, opening significantly higher than its previous close and trading near its 52-week low, which may present a buying opportunity for investors. This performance, coupled with its position below the 200-day moving average, indicates potential for a trend reversal, making it a noteworthy consideration for investors.

Brokerage Firm: Truist
Rating Change: Hold >> Buy
Price Target: $85 >> $ 145

$XOM – Exxon Mobil Corp
Recent News
TD Cowen upgraded ExxonMobil to ‘Outperform’ from ‘Market Perform’, maintaining a price target of $115. This upgrade reflects the belief in a greater upside for ExxonMobil, especially as its stock price declined without a change in valuation. Analysts note that while their forecast for ExxonMobil’s cash flow from operations (CFO) growth is lower than the company’s own guidance, it has been revised upwards due to recent disclosures. ExxonMobil’s ability to fund its dividend at a lower oil price compared to its peers is highlighted as a potential key investor focus, especially with expectations of commodity prices normalizing. In contrast, Chevron was downgraded to ‘Market Perform’, with a reduced price target of $150 from $170, due to concerns over execution in its key growth areas and doubts about the cash inflow from its HES deal until 2027. Analysts also suggest that Chevron might need higher oil prices to sustain its dividend and buyback program beyond 2025, amid shifting oil risk.

Brokerage Firm: TD Cowen
Rating Change: Market Perform >> Outperform
Price Target: $115

Downgrades

$COIN – Coinbase Global
Recent News
JPMorgan downgraded the U.S. cryptocurrency exchange Coinbase to ‘Underweight’ from ‘Neutral’, maintaining a price target of $80, amidst concerns over the potential disappointment in the crypto market. Despite Coinbase’s dominance in the U.S. and its global leadership in crypto trading and investing, JPMorgan analysts led by Kenneth Worthington expressed skepticism about the positive impact of spot bitcoin ETFs, which were initially seen as a significant catalyst for the crypto market. The launch of these ETFs, approved by the SEC, allowed new investor segments to access cryptocurrencies without owning the underlying assets. However, JPMorgan warns that any disillusionment with these ETF flows could dampen the enthusiasm that fueled the crypto rally, especially in the second half of 2023. With the bitcoin price already under pressure, the bank anticipates a potential decline in token prices, trading volumes, and ancillary revenues for companies like Coinbase. The report also notes that Coinbase would likely play a similar role in any approved spot ether ETFs. Additionally, the recent selling of the Grayscale Bitcoin Trust by FTX’s bankruptcy estate, since its conversion to an ETF, has added to the downward pressure on bitcoin prices.

Brokerage Firm: JP Morgan
Rating Change: Neutral >> Underweight
Price Target: $80

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