BofA/Merrill Lynch Downgrades Enphase Energy (ENPH) to Neutral

BofA/Merrill Lynch downgraded Enphase Energy (NASDAQ: ENPH) from Buy to Neutral with a price target of $16.00 (from $13.00) on valuation with the stock up 130% YTD.

Analyst Krish Sankar said while Enphase is a well-managed company with great products, it could face challenges to continued US residential market share dominance at current margin levels given price vs. volume tradeoffs and customer concentration.

The firm said under a best case scenario EPS peaks at $1.00 in CY16. Earnings could potentially decline thereafter since incremental growth would likely come at the expense of margins, the analyst said.

For an analyst ratings summary and ratings history on Enphase Energy click here. For more ratings news on Enphase Energy click here.

Shares of Enphase Energy closed at $14.44 yesterday.

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