Enphase Energy downgraded to Underperform from Market Perform at BMO Capital

BMO Capital downgraded Enphase Energy (ENPH) to Underperform from Market Perform with a price target of $39, down from $46, following the release of the House Ways and Means Committee tax plan. The plan, if adopted, will eliminate the Section 25D Residential Clean Energy Credit for homeowners who take loans or pay cash for their residential solar and battery systems at the end of 2025 and the firm believes elimination of the 25D credit impacts Enphase “disproportionately,” the analyst tells investors. This would shrink the overall demand for U.S. residential solar in 2026, further contributing to Enphase’s loss of market share, the analyst argues.