In a report released yesterday, Praneeth Satish from Wells Fargo reiterated a Hold rating on Shoals Technologies Group (SHLS – Research Report), with a price target of $6.00.
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Praneeth Satish’s rating is based on a combination of factors that influence Shoals Technologies Group’s current and future performance. The company has reaffirmed its revenue guidance for 2025, with expectations to reach the higher end of the range due to full construction calendars, indicating strong demand. However, there is limited visibility into margin improvement, which contributes to the Hold rating.
Another factor is the mixed impact of tariffs. While Shoals could potentially benefit from increased pricing power due to tariffs affecting competitors, the company also faces some cost pressures from imported materials. Additionally, Shoals’ recent project wins in the BESS market and the ongoing legal case with Prysmian add layers of uncertainty. These elements combined suggest a cautious approach, justifying the Hold rating.
Satish covers the Energy sector, focusing on stocks such as Williams Co, Enbridge, and TC Energy. According to TipRanks, Satish has an average return of 8.6% and a 62.28% success rate on recommended stocks.
In another report released today, Citi also maintained a Hold rating on the stock with a $5.50 price target.