Roth Capital analyst Philip Shen believes the Senate Tax Cuts and Jobs Act includes multiple elements that could negatively affect renewable tax equity capacity, such as a cut in the corporate rate from 35% to 20%, the passage of the Base Erosion Anti-Abuse Tax, or BEAT, without exemptions for solar/wind credits, and a reduction in the number of years the product tax credit could be claimed from 10 down to four years. Near-term, the analyst believes that continued negotiations on the Hill could cause increased volatility for his universe of stocks with direct or indirect exposure to the U.S. solar and wind markets, such as AMSC (AMSC), Broadwind Energy (BWEN), 8point3 Energy (CAFD), Canadian Solar (CSIQ), Daqo New Energy (DQ), Enphase Energy (ENPH), First Solar (FSLR), Hannon Armstrong (HASI), Hanwah Q CELLS (HQCL), JA Solar (JASO), JinkoSolar (JKS), SolarEdge (SEDG), Sky Solar (SKYS), ReneSola (SOL), Sunworks (SUNW), and TPI Composites (TPIC).

Jefferies analyst Dushyant Ailani downgraded Enphase Energy to Hold from Buy with a price target of $111, down from $135. The firm expects residential macro headwinds to persist and while it says Enphase management continues to take the right steps in managing under shipment and expanding internationally, delayed interest rate cuts and weaker U.S. demand push out its forecasts for a recovery. The firm, which expects the recovery to be slower than its prior expectations, lowered its FY24 and FY25 EPS forecast to $2.91 and $4.90, which it notes are 3% and 6%, respectively, below consensus.

BMO Capital analyst Ameet Thakkar lowered the firm's price target on Enphase Energy to $113 from $118 and keeps a Market Perform rating on the shares after its Q1 earnings miss and "underwhelming" Q2 revenue guidance. The firm is also less confident in the company's ability to achieve the upper end of what it had described as $450M-500M normalized demand, reducing its FY24 EPS view to $3.28 from $3.71 and its FY25 view to $5.93 from $6.21.

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Guggenheim analyst Joseph Osha downgraded Enphase Energy to Sell from Neutral with a $92 price target.

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Emeren announced the successful co-development agreement of 199 MW of Battery Storage Projects in two regions of Southern Italy with Nuveen Infrastructure, rebranded from Glennmont Partners, one of the world's largest fund managers investing in clean energy. As previously announced, this agreement marks the final stage in the portfolio collaboration between Emeren and Nuveen, achieving a total power capacity of 354 MWp. The partnership will involve Nuveen and Emeren jointly developing two additional stand-alone Battery Storage Projects in the Apulia region of Southern Italy. These projects are scheduled to enter the construction stage in mid 2025 and begin operations in early 2026.

As previously reported, Evercore ISI analyst Sean Morgan upgraded First Solar to Outperform from In Line with an unchanged price target of $227. The market is expecting the Biden administration to remove a trade exemption for bifacial solar modules imported to the U.S., which now represent about 98% of U.S. solar imports, the analyst noted. Solar panel imports skyrocketed in 2023 to 54GW and some market participants have stated that reliance on imports and oversupply are negatively impacting solar domestic factories, which have been a priority for the current U.S. administration, putting pressure on greater U.S. trade protections and policy support, the analyst added.

Evercore ISI analyst Sean Morgan upgraded First Solar to Outperform from In Line with a $227 price target.