Enphase Energy initiated with an Equal Weight at Morgan Stanley

Morgan Stanley analyst Andrew Percoco initiated coverage of Enphase Energy with an Equal Weight rating and $268 price target, offering 27% upside. The analyst says the stock’s valuation balances the company’s above-peer profitability and long-term growth prospects with elevated near-term risks. Enphase has exposure to small-scale residential solar installers, which may see a more significant impact from Net Energy Metering 3.0 in California and the volatile financing environment, the analyst tells investors in a research note.