Enphase upgraded to Hold at BofA, sees turning a corner with safe harbor revenues

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Enphase Energy (NASDAQ:ENPH [https://seekingalpha.com/symbol/ENPH]) was upgraded to Hold from Underperform with a $36 price target at Bank of America on Thursday, in anticipation of better than expected near-term revenues while acknowledging lingering concerns on the state of residential solar in outer years.

Recent guidance issued from the U.S. Treasury Department was positive for residential solar, yet Enphase (NASDAQ:ENPH [https://seekingalpha.com/symbol/ENPH]) shares rose just ~10%, and BofA analyst Julien Dumoulin-Smith perceived a market disconnect on value of safe-harbor spending, which he said is highly likely as TPOs look to lock in tax credits through 2030.

Dumoulin-Smith downgraded Enphase (NASDAQ:ENPH [https://seekingalpha.com/symbol/ENPH]) in November 2024, but now he believes the near-term narrative has changed for the better given visibility on Investment Tax Credit policy through as much as 2030, with the company now poised to deliver better than expected revenues through Q3 2026 as TPOs rush in to safe harbor ahead of July 2026.

"Yes, the long term has big existential questions, but at least in the near to medium term, we think it's time to step up and give credit where it's due," the analyst wrote in his upgrade.

Enphase Energy (ENPH [https://seekingalpha.com/symbol/ENPH]) -3.6% in Thursday's trading, down alongside other solar stocks following critical remarks [https://seekingalpha.com/news/4488024-first-solar-enphase-lead-sector-losers-as-trump-escalates-renewable-energy-criticism] on the sector from President Trump.

MORE ON ENPHASE ENERGY

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* Could Enphase Energy And SolarEdge Technologies Become The Netflix Of Energy [https://seekingalpha.com/article/4808221-could-enphase-energy-solaredge-technologies-become-netflix-of-energy]
* Enphase Q2: The Worst Appears To Be Over (Upgrade) [https://seekingalpha.com/article/4803371-enphase-q2-the-worst-appears-to-be-over-upgrade]