Enphase Energy downgraded at BofA ahead of critical transition year
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Enphase Energy (ENPH
-7.1%) is today's biggest loser on the S&P 500 after Bank of America downgrades shares to Neutral from Buy with a $187 price target, slashed from $297, following the company's recent analyst day, which highlighted efforts to diversify beyond its core microinverter sales "but affirmed our concerns of a slower transition than perceived."

BofA's Julien Dumoulin-Smith sees 2022 as a transition year, "as Resi storage efforts principally and [management] entrenches itself with long-tail installers to ensure a pathway to sustained and potentially ever higher margins."
The analyst stresses Enphase's "clear long-term ability to pivot to 40% gross margins as it becomes entrenched with installers through software integration and additional product portfolio," but he expects to see near-term EBITDA growth slower than recent trend.
Enphase Energy shares have slipped slightly over the past year and trade 40% below their 52-week high $282.46 posted in mid-November.