Shoals Technologies initiated with a Buy at Janney, sees pullback offering entry

As previously reported, Janney Montgomery Scott initiated coverage of Shoals Technologies with a Buy rating and $20 fair value estimate. Shoals, the leading provider of electrical balance of system, or EBOS, for domestic utility-scale solar facilities, has seen its shares underperform in 2023 and 2024 to date, but the firm thinks investors should be using recent relative underperformance to acquire shares, the analyst stated. The company boasts “a proven leading domestic market share” within EBOS, with high margins, and the firm thinks Shoals could be an attractive M&A candidate if weaker relative valuations persist for an extended period.