Deutsche Bank Downgrades Enphase Energy (ENPH) to Sell

Deutsche Bank downgraded Enphase Energy (NASDAQ: ENPH) from Hold to Sell with a price target of $3.00 (from $6.00). Analyst Vishal Shah sees downside risk to 2016 estimates.

"While we expect longer term margins to remain in the 35-40% range, we believe margins could come under pressure in the near term and decline to the high 20s as ENPH focuses on top line growth and share gains. We have generally maintained the view that ENPH remains at risk of share loss against SEDG despite benefitting from strong growth of the US market and believe increasing pricing pressure could mitigate the rapid growth in some of the smaller customer segments, in our view. Until the company releases new lower cost Gen 5 products (version 2) in late 2016, we expect downside risk to margins and estimates and are lowering our PT/rating to $3/Sell respectively," said Shah.

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 $4.98 yesterday.

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