Enphase Energy downgraded to Underperform at BofA on demand headwinds

As previously reported, BofA analyst Julien Dumoulin-Smith downgraded Enphase Energy to Underperform from Neutral with a price target of $169, down from $227, following the company’s "disappointing" Q1 results. Given the after-hours move lower in the stock, the firm expects some investors to argue that the worst "has already washed out." However, BofA disagrees with that view, as it sees headwinds to near-term growth being bolstered by weak sell through trends in the distributor channel and thinks demand headwinds are likely to "linger."