Shoals Technologies selloff ‘makes little sense,’ says Northland

Northland analyst Donovan Schafer lowered the firm’s price target on Shoals Technologies to $26 from $30, citing multiple compression, and keeps an Outperform rating on the shares. Shoals shares have lost about 27% since the company released “generally solid Q2 results” on August 1 and the selloff “makes little sense based on any results or revelations from the Q2 release or public call,” the analyst tells investors. With the Claymore/MAC Global Solar Energy Index (TAN) down about 17% in that same time frame, much of the selloff in Shoals is “due to the general solar selloff, but the excess selloff in SHLS has limited logic,” the analyst added.