UPDATE: Bank Of America Downgrades Enphase Energy Inc As Stock Appears Fully Valued

In a report published Thursday, Bank of America analyst Krish Sankar downgraded the rating on

from Buy to Neutral, but raised the price target from $13.00 to $16.00. In the report, Bank of America noted, “We are downgrading Enphase to Neutral (from Buy). A well-managed company with great products, Enphase could face challenges to continued US residential market share dominance at current margin levels given price vs. volume tradeoffs and customer concentration. Our best case scenario for earnings (60% CY16 US resi mkt share, 14% of total shipments to SCTY, minimal margin dilution), yields $1.00 in peak EPS in CY16. Earnings could potentially decline thereafter since incremental growth would likely come at the expense of margins. At 16x CY16 peak earnings of $1.00 (peers at 7-16x cons CY16), we don't see a lot of upside to the stock. ENPH shares are up more than 130% YTD, and we think it prudent to step aside at this point.” Enphase Energy Inc closed on Wednesday at $14.44.