Trump Administration Moving to Ban Imported Inverters

Research evidence excerpt

Trump Administration Moving to Ban Imported Inverters

of BMO Capital Markets Corp. and therefore may not be subject to the FINRA Rule 2241 restrictions on

communications with a subject company, public appearances and trading securities held by a research analyst account.

Company Specific Disclosures

Disclosure 8C: BMO Capital Markets or an affiliate has a financial interest in 0.5% or more in the issued share capital of Enphase Energy.

Methodology and Risks to Target Price/Valuation for Enphase Energy (ENPH-NSDQ)

Methodology: Blended discounted cash flow and relative multiple.

Risks: The growth of solar systems, particularly in the U.S., where many of ENPH's inverter and battery systems reside, is often dependent on

tax and other government-sponsored incentives that may be reduced or eliminated. ENPH's contract manufacturing approach and supplies of

critical components are subject to potential disruption and shortages. Standards for electric equipment vary by country. ENPH has developed a

competitive advantage in MLPE, but new entrants could reduce its market share.

Methodology and Risks to Target Price/Valuation for GE Vernova (GEV-NYSE)

Methodology: Sum-of-the-parts 2030E EV/EBITDA, which utilizes a 18.75x multiple for Power, 4.0x multiple for Wind, and 20.0x multiple for

Electrification. We also incorporate a target FCF yield component in our valuation.

Risks: Interconnection and permitting delays; supply chain disruptions including high cost and unavailability of raw materials; failure to

implement lean operating model/execute on cost-out initiatives; quality issues and safety failures; slower-than-anticipated rebound/recovery

of onshore wind market; delays with offshore wind projects.

Methodology and Risks to Target Price/Valuation for Nextpower Inc. (NXT-NSDQ)