, an analyst from Needham, has initiated a new Buy rating on Shoals Technologies Group (SHLS).
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Needham & Company has given its Buy rating due to a combination of factors that highlight Shoals Technologies Group’s strong market position and growth potential. The company is recognized as a leader in the U.S. utility-scale electrical balance of systems (eBOS) market, thanks to its innovative plug-and-play architecture that enhances efficiency by reducing labor costs, compressing project timelines, and improving field quality.
Furthermore, Shoals Technologies is poised for growth following a period of adjustment in 2023-2024, characterized by warranty issues and changes in leadership. The company is well-positioned to benefit from robust domestic solar demand and has a substantial backlog of orders, which provides a solid foundation for future growth. Additionally, there are promising opportunities in the battery energy storage systems (BESS) sector and potential gains from data center projects, which could further bolster its market position.
In another report released on October 19, RBC Capital also maintained a Buy rating on the stock with a $10.00 price target.