Shares of Enphase Energy Inc. ENPH, +0.10% jumped 7.8% toward a four-month high in afternoon trading Tuesday, enough to pace the S&P 500’s gainers.
The stock’s rally comes after the solar and alternative-energy products company said late Monday that it plans to lay off 10% of its workforce as it looks to cut costs amid a challenging economic environment. Analyst Mark Strouse at J.P. Morgan reiterated the overweight rating he’s had on the stock for at least the past three years, and raised his price target to $143 from $125. Strouse views the job-cut announcement “favorably,” as it will focus Enphase on the core U.S. market during the residential solar industry downturn. The stock, which was headed for the highest close since Aug. 15, has run up 32.4% month to date, toward the biggest monthly gain since it soared 45.6% in July 2022. Meanwhile, the stock was still down 49.5% year to date, as it heads for the first yearly decline since 2016. In comparison, the Invesco Solar ETF TAN, -0.89% has gained 14.4% in December but shed 28.1% in 2023, while the S&P 500 SPX, +0.17% has tacked on 4.3% this month and rallied 24% this year.