In a report released today, Jeff Osborne from TD Cowen maintained a Buy rating on Shoals Technologies Group (SHLS – Research Report), with a price target of $10.50.
Jeff Osborne has given his Buy rating due to a combination of factors that position Shoals Technologies Group favorably in the market. Despite the challenges posed by tariff volatility, Shoals is less affected compared to its competitors because it sources fewer materials from China. This strategic advantage could lead to increased market share, especially against competitors like Voltage that are more exposed to Chinese tariffs.
Furthermore, Shoals is expected to maintain stable margins due to its bespoke product offerings and secured input costs through signed purchase orders. The company is also anticipated to see a strong performance in the latter half of the year, driven by increased construction activity and solid quoting activity in the first half. While there are potential challenges such as PPA renegotiations and IRA reforms, Shoals’ strategic positioning and market conditions support a positive outlook.
In another report released today, Morgan Stanley also reiterated a Buy rating on the stock with a $6.00 price target.