Analyst Jeff Osborne from TD Cowen maintained a Buy rating on Shoals Technologies Group and increased the price target to $11.00 from $10.00.
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Jeff Osborne has given his Buy rating due to a combination of factors including Shoals Technologies Group’s strong financial performance and strategic growth initiatives. The company reported a solid third quarter with revenue exceeding expectations, despite some pressure on gross margins due to tariffs and product mix. Shoals’ backlog and awarded orders have shown a healthy increase, indicating strong future revenue potential.
Furthermore, the company has made significant strides in securing new business opportunities, such as the initial BESS bookings for data centers, which are expected to contribute to future revenue growth. Despite some challenges with gross margins, the overall outlook remains positive with a book-to-bill ratio of 1.4x, suggesting robust demand for Shoals’ products. These factors, combined with the company’s guidance aligning with market expectations, underpin Osborne’s Buy rating.
In another report released on October 22, Needham also initiated coverage with a Buy rating on the stock with a $12.00 price target.