Enphase Energy stock is down 40% from recent high: buy the dip?

Enphase Energy Inc (NASDAQ: ENPH) has lost more than 40% over the past three months but the Chief Investment Strategist at ERShares is convinced the story moving forward will be a different one.

The bull case for Enphase Energy stock

If anything, Eva Ados dubs the recent sell-off in shares of the energy technology company as an opportunity to build a position.

Other than valuation, she’s bullish on Enphase Energy stock for the company’s sound fundamentals as well. On CNBC’s “Power Lunch”, Ados said:

Last month, the Nasdaq-listed firm reported its financial results for the fourth quarter that handily topped Street estimates.

Enphase Energy stock could gain over 20%

Enphase Energy also finds a spot among the notable beneficiaries of the Inflation Reduction Act.

Also on Monday, Raymond James’ Pavel Molchanov upgraded this solar stock to “outperform”. His $225 price target suggests more than a 20% upside on its previous close.

Molchanov also sees possibility of a dividend or share repurchase programme in the not-so-distant future that could further be a positive catalyst for the Enphase stock.