Solar company Enphase Energy could get a boost as demand in the U.S. increases in the coming years, according to Deutsche Bank. Analyst Corinne Blanchard initiated the stock as a buy with a price target of $330, which presents upside of 10.8% from its Monday closing price. The stock is up 2.6% in the premarket, adding to its 62.9% gain this year. That's about in line with the broader energy sector, which is the only in the S & P 500 performing positively this year. "We are BUY rated on Enphase, and believe the strong performance and incremental volumes coming online with an increased US footprint, justifies its rich valuation," she said in a note to clients. Solar in the U.S. is expected to see significant market growth and tailwinds from legislation that "outshine" any short-term challenges, Blanchard said. Among her list of stocks to watch is Enphase, which makes microinverter-based solar and battery systems that then allow for the sun to be converted into energy. Manufacturing is expected to increase 20% by the first half of 2023 and 75% by the end of that year. Blanchard said the company also stands to gain from the Inflation Reduction Act's solar tax credit as it increases its U.S. presence and sees increasing demand. About 4% of the U.S. market has been penetration, but Blanchard said that level is expected to be at or above 15% by 2030. She also said product innovation will help support a margin of about 42%. The company will use a "strategically located footprint," she said, to reduce freight and supply chain challenges. To be sure, the stock could underperform these expectations if solar more broadly does not perform as well as anticipated; if manufacturing or certain technology is slow; or if regulations change. She also initiated coverage of solar module producer First Solar at a buy with a price target of $180, which presents an upside of 17.2% over Monday's close. — CNBC's Michael Bloom contributed to this report.