Jon Windham, an analyst from UBS, maintained the Buy rating on Shoals Technologies Group. The associated price target was raised to $9.00.
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Jon Windham has given his Buy rating due to a combination of factors that highlight Shoals Technologies Group’s strong market positioning and growth potential. The company is expected to benefit significantly from the rising demand for electricity and battery storage, particularly driven by data center expansions. This positive outlook is reflected in the revised EBITDA estimates for 2025 to 2027, which have been increased to account for higher revenues from Shoals’ data center products and improved operational efficiencies.
Furthermore, the passage of the One Big Beautiful Bill Act and recent IRS guidance have improved the prospects for U.S. solar and storage markets, supporting the Buy rating. Shoals’ recent patent issuance for its Big Lead Assembly product and its strategic legal actions against competitors also contribute to a favorable growth outlook. The increased price target to $9, based on a higher EV/EBITDA multiple, aligns Shoals with its peers in the utility-scale solar sector, indicating confidence in the company’s future performance.
In another report released on September 19, J.P. Morgan also maintained a Buy rating on the stock with a $9.00 price target.