Traders ought to load up on shares of Enphase Vitality , even when a recession could also be on the horizon, Wells Fargo stated Wednesday. Analyst Praneeth Satish named the photo voltaic inverters maker a high choose, recommending that any weak spot within the inventory be used as a shopping for alternative. The analyst has a value goal of $344 per share on Enphase, implying upside of 11.1% from Tuesday’s shut. He additionally charges the inventory as chubby. “ENPH’s development is actually ‘recession proof’ with international ESG mandates driving secular demand for photo voltaic. Whereas ENPH trades at a steep premium, we view this premium as warranted, as 2023-24 Consensus estimates seem too low,” Satish stated. Shares of Enphase have had a stellar 12 months, rallying 69% in 2022. Nonetheless, the inventory dropped 7.8% on Tuesday, outpacing the losses seen within the broader marketplace for the day. However Satish stated this must be seen as a shopping for alternative for buyers. Satish stated the corporate plans to double manufacturing of microinverters, which converts present energy from photo voltaic panels to power that can be utilized elsewhere, within the subsequent 12 months. That’s forward of consensus estimates, he stated, and displays how briskly administration believes the corporate can develop. That growth additionally has upside potential, as an adjusted mannequin with heightened capability would result in a 2024 income of $6.7 billion, 67.5% above the consensus estimate of $4 billion. Enphase expects so as to add between 4 and 6 microinverter manufacturing traces throughout the U.S. by the top of subsequent 12 months, he stated. The onshoring may present a lift of between $50 million and $250 by means of advantages from the Inflation Discount Act. The analyst additionally stated that the inventory may attain $481 per share past 12 months. That means upside of greater than 55% from Tuesday’s shut. “We acknowledge that ENPH’s premium valuation can solely be sustained with continued beat and raises,” he stated. “Nonetheless, we imagine ENPH is effectively positioned to proceed this streak for a minimum of the subsequent 12 months.” — CNBC’s Michael Bloom contributed to this report.