Shoals Technologies downgraded to Market Perform from Outperform at Northland

Northland downgraded Shoals Technologies to Market Perform from Outperform with a price target of $18, down from $26. The firm is “slightly more cautious” on the U.S. utility-scale solar sector, which combined with the number of connections required for an EV or BESS installation versus utility-scale solar, makes it question whether Shoals will be able to hit consensus growth expectations for 2024 and/or 2025. The company “still stands apart from its competitors on execution,” but 40% growth in 2024 “could prove challenging,” the analyst tells investors.