Brokerages remain bullish on Enphase Energy stock, with 27 of 36 analysts having a Buy or Strong Buy rating and the other nine rating the stock at Hold. At a share price of around $223.60, the implied gain based on a median price target of $285.00 is about 27.5%. At the high target of $365.00, the upside potential is 63.2%.
For the first quarter, analysts have forecast revenue of $720.16 million, down 0.6% sequentially but 63.2% higher year over year. Adjusted EPS are forecast at $1.22, down 19.2% sequentially and up 54.4% year over year. For the 2023 fiscal year, analysts estimate EPS at $5.55, up 20.1%, on revenue of $3.18 billion, up 36.2%.
The shares trade at 40.3 times expected 2023 EPS, 29.6 times estimated 2024 earnings of $7.54 and 23.9 times estimated 2025 earnings of $9.36 per share. The stock’s 52-week range is $128.67 to $339.92. Enphase does not pay a dividend. Total shareholder return for the past year was 42.83%.
Microsoft
Over the past 12 months, shares of Microsoft Corp. (NASDAQ: MSFT) have added less than 2% to their share price. Like Alphabet, however, 2023 has been a different story. Shares are up more than 19% so far this year. The company has said it will cut 10,000 jobs.
The release of ChatGPT in early March pushed shares up by about 16%, but that has leveled off since the beginning of April at about 13.8%. A more important driver of investor sentiment for Microsoft is likely to be its cloud business and the company’s outlook for its business customers’ buying plans as recession chatter continues unabated.
Sentiment for the stock is virtually all positive. Of 51 analysts covering the stock, 46 have a Buy or Strong Buy rating and four more rate it at Hold. At a share price of around $285.80, the potential upside based on a median target of $306.00 is about 7.1%. At the high target of $420.00, the implied gain is almost 47%.
For its third quarter of fiscal 2023, revenue at the Dow component is forecast at $51.04 billion, 3.2% sequentially higher and up 3.4% year over year. Adjusted EPS are forecast at $2.23, down 3.7% sequentially and up a penny year over year. For the full 2023 fiscal year ending in June, current consensus estimates call for EPS of $9.36, up 1.6%, on revenue of $208.95 billion, up 5.4%.
Microsoft stock trades at 30.5 times expected 2023 EPS, 26.7 times estimated 2024 earnings of $10.72 and 23.1 times estimated 2025 earnings of $12.38 per share. The stock’s 52-week range is $213.43 to $294.18. Microsoft pays an annual dividend of $2.72 (yield of 0.95%). Total shareholder return over the past year was 2.76%.
PacWest Bancorp
PacWest Bancorp (NASDAQ: PACW) lost more than 60% of its value between March 8 and March 13 following the collapse of Silicon Valley Bank and Signature Bank. Even though shares have come back a bit, the stock is still down nearly 51% for the year to date and more than 49% over the past 12 months. Bloomberg reported last week that the regional bank is seeking a buyer for its lender finance business. If successful, a sale would shrink the company’s balance sheet and provide a cash infusion. The bank’s rich dividend may be in danger.
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