Why Enphase Energy Stock Raced Higher This Week

Solar energy and related stocks have had quite the roller-coaster ride this year. Fortunately for investors in components maker Enphase Energy (NASDAQ: ENPH), their company enjoyed one of the peaks over the past several days.

Energized by news of a deal across the Atlantic Ocean, plus a pair of analyst price target raises, market players bid up Enphase's stock by more than 9% over the week, according to data compiled by S&P Global Market Intelligence.

European expansion

On Monday, Enphase announced that it has expanded its support for virtual power plants throughout Europe. The company wrote that its goods can now enable certain smart grid features; among others, this includes one-minute data streaming, the generation of instant alerts, and curtailment to support constraints on a power grid.

Image source: Getty Images.

Additionally, Enphase said, it's expanding support for the control of heat pumps and electric vehicle (EV) chargers. These are being effected through expanded partnerships within the continent, it added.

According to the company, its products have helped power thousands of homes in key European countries like Germany and the U.K.

A positive pair of prognosticators

Those two pundit price target bumps came later in the week. The first was from BMO Capital's Ameet Thakkar, who upped his fair-value assessment to $32 per share from $30, although he maintained his underperform (read: sell) recommendation. His peer Matt Strouse of J.P. Morgan added $1 per share for a new level of $40, and kept his neutral rating unchanged.

The company's expansion feels sensible, particularly given how enamored many European nations and consumers are of green energy solutions. Investors should watch to see how its business across the ocean develops.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Enphase Energy. The Motley Fool has a disclosure policy.