Enphase Energy downgraded to Underweight from Equal Weight at Morgan Stanley

Morgan Stanley downgraded Enphase Energy (ENPH) to Underweight from Equal Weight with a price target of $36, down from $67. The firm cites worsening end market demand, potential negative impacts to earnings from tariffs, and the company’s heightened exposure to potential changes to the Inflation Reduction Act for the downgrade. Morgan Stanley recognizes the strength of Enphase’s balance sheet is an advantage compared to peers, but sees downside risk to the stock on multiple compression and lower consensus estimates, as the outlook for residential solar worsens.