According to the information from Choice Finance APP, Royal Bank of Canada (RBC) released research reports, downgrading Enphase Energy (ENPH.US) from 'outperform' to 'market perform' rating, with a target price lowered from $125 to $100.

The bank stated that 'fierce market dynamics' will lead to a slowdown in the company's growth rate next year, but this situation has not yet been reflected in general expectations.

Analyst Christopher Dendrinos mentioned that the high interest rate environment and the TPO system can receive higher tax credits from the Inflation Reduction Act, 'supporting the continued adoption of TPO, which may increasingly become a significant obstacle to demand growth next year.'

So far this year, battery demand has unexpectedly increased, but Dendrinos believes that Enphase's market share growth may be limited as sales are almost entirely transitioning to the current generation of batteries, and additional market share growth in California may be more challenging, especially if Tesla succeeds in driving demand for the Powerwall 3.

RBC believes that Enphase's market share in the backup power market is declining, but also acknowledges that the next generation 10kW battery, meter collars, and new combiner launched in early 2025 will have the opportunity to regain market share, leading to significant cost savings.