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Investing.com - Jefferies lowered its price target on Shoals Technologies Group (NASDAQ:SHLS) to $6.00 from $7.20 while maintaining a Buy rating on the stock. Currently trading at $4.67, the company has a market capitalization of $782 million and trades at a P/E ratio of 45x. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value model.
The price target reduction follows Shoals Technologies’ second-quarter earnings report, which showed strong performance and an increased revenue outlook for fiscal year 2025.
Despite the positive revenue news, Shoals Technologies shares fell 13% after the earnings announcement, primarily due to concerns about the company’s margin outlook.
Jefferies noted that management guided for EBITDA margin compression of approximately 160 basis points at the midpoint, driven by changing revenue mix and price concessions.
The research firm remains bullish on the stock, stating that multiple revenue tailwinds place their estimates ahead of consensus across multiple years, which they believe will offset the margin headwinds.
In other recent news, Shoals Technologies Group reported its Q2 2025 earnings, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $0.10, exceeding the forecast of $0.08, which represents a 25% surprise. Revenue for the quarter reached $110.8 million, surpassing the anticipated $104.77 million. These results reflect a strong performance for Shoals Technologies Group and were positively received. The company’s robust earnings report highlights its financial strength and operational efficiency. Investors and analysts alike are taking note of these developments. Shoals Technologies Group’s recent earnings announcement is a significant highlight in the company’s ongoing financial narrative.
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