Keybanc Takes Bullish Stance on Enphase Energy Stock

Year-over-year, ENPH sports a healthy 115.6% lead

Digital Content Manager
Sep 21, 2021 at 10:13 AM
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The shares of Enphase Energy Inc (NASDAQ:ENPH) are up 0.3% at $152.84 this morning, after Keybanc initiated coverage on the stock with an "overweight" rating, as well as a $179 price target. The analyst in question said the solar energy concern will rebound from its recent trough, thanks to the strong base business it has in place, as well as opportunities for growth.

Enphase Energy stock has been chopping lower on the charts since its August rally to the $201 level. Shares have also recently slipped below support at the 80-day moving average, which contained a number of the stock's pullbacks last month. The $150 area seems to have emerged as floor, though, and year-over-year ENPH remains up 115.6%.

A sentiment shift in the options pits may create additional tailwinds for Enphase Energy stock. This is per its Schaeffer's put/call open interest ratio (SOIR) of 1.26, which stands higher than all readings from the past year. In simpler terms, short-term options traders have rarely been more put-biased.

The equity sports attractively priced premiums at the moment, too, making now a prime time to weigh on ENPH's next move. The security's Schaeffer's Volatility Index (SVI) of 58% stands higher than 18% of readings from the last 12 months. This indicates the options market is pricing in low volatility expectations for the stock at the moment.

It is also worth noting ENPH ranks high on the Schaeffer's Volatility Scorecard (SVS), with a score of 93 out of 100. This means the equity has consistently realized higher volatility than the options pits have priced in, making it an ideal premium-buying candidate.

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