BofA Trims Enphase (ENPH) Price Target, Maintains Underperform Rating

Bank of America has lowered its price target on Enphase Energy, Inc. (NASDAQ:ENPH) to $34 from $42, reiterating an Underperform rating as emerging legislative risks weigh on the solar company’s outlook. The revision follows the recent passage of the “One Big Beautiful Bill” in the House, which introduces a range of challenges for residential solar deployment.

A solar panel array stretched across a large open field, its glimmering panels reflecting the sun.

The bill includes new constraints such as restrictions under Section 48E on leased systems, tighter timelines for construction starts, and sourcing limitations tied to the Foreign Entity of Concern (FEOC) framework. These provisions could complicate supply logistics and financing structures across the industry, according to BofA’s analysis. While the Senate may revise certain components, BofA is now modeling the full repeal of the 25D tax credit, previously a key driver of residential solar affordability. That change led the firm to cut its U.S. residential installation forecast for 2026 by approximately 3.5 gigawatts.

The lowered volume expectations have prompted a downward revision of Enphase’s earnings outlook for 2026 and 2027. Despite Enphase Energy, Inc. (NASDAQ:ENPH)’s strong position in the microinverter segment and its growing presence in energy storage, BofA sees near-term pressure from reduced consumer incentives and uncertain regulatory conditions.

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