Roth Capital analyst Philip Shen, in response to a report issued earlier today by Citron Research recommending shorting Enphase Energy (ENPH) and Solaredge Technologies (SEDG), said his quick initial checks with a potential customer, who he identified as "a top 10 U.S. resi installer, called Generac's (GNRC) residential solar solution "expensive and clunky." Entering the market "does not mean the company will succeed," stated Shen, who added that the inverter landscape "is littered with failed efforts and companies that have tried to copy" Enphase and Solaredge. The analyst, who thinks the Generac threat is "likely limited," sees the pullback in the other two stocks as an attractive opportunity to add shares and maintains Buy ratings on both.

Bearish flow noted in SolarEdge with 5,074 puts trading, or 1.1x expected. Most active are Apr-24 60 puts and May-24 50 puts, with total volume in those strikes near 830 contracts. The Put/Call Ratio is 1.67, while ATM IV is up over 1 point on the day. Earnings are expected on May 8th.

Mizuho lowered the firm's price target on Enphase Energy to $148 from $150 and keeps a Buy rating on the shares. The firm's Q1 clean estimates are mostly in line with company guidance and consensus, saying most companies reset expectations on the Q4 earnings call and had good visibility for the quarter. The analyst says Mizuho's most significant change in its quarterly preview is regarding Q2 results for the residential solar and inverter names. The firm expects Q2 installs to be down quarter-over-quarter verses consensus assuming a Q1 trough, based on permitting data which show Q2 MWs down 7% quarter-over-quarter. Mizuho's sector preference for utility solar over residential solar is unchanged.

Enphase Energy announced the launch of the IQ Combiner Lite in the Netherlands to simplify installation and commissioning of small-scale solar installations on homes categorized as "social housing," where rent is capped by the Dutch government to increase accessibility for people with low incomes.