Shoals sinks after BNP downgrades on Nextracker competition

As previously reported, BNP Paribas Exane downgraded Shoals Technologies (SHLS) to Underperform from Neutral with a price target of $4, down from $4.50. Nextracker (NXT) is expanding into a market where Shoals operates with its acquisition of Bentek, the analyst told investors in a research note. The firm says Shoals “hasn’t been able to catch a break.” It believes Nextracker is constantly improving costs and supply chain, and notes the company will be bundling, optimizing, expanding capacity.” Nextracker is probably talking to all of Shoals’ customers as it captures 50%-60% of the tracker market, contends BNP. The firm thinks product difference “might not matter.” Shares of Shoals are down 23%, or $1.44, to $4.68 in late morning trading.