Jefferies raises Shoals Technologies stock price target to $9 from $6

Investing.com - Jefferies has raised its price target on Shoals Technologies Group (NASDAQ:SHLS) to $9.00 from $6.00 while maintaining a Buy rating on the stock. The upgrade comes as the stock shows strong momentum, with a 153.72% return over the past six months. According to InvestingPro data, analyst targets for SHLS currently range from $4 to $11.

The firm cited Shoals’ confidence in strong top-line growth through 2027, with battery energy storage systems (BESS) gaining traction among independent power producers and hyperscalers.

Jefferies noted that Shoals’ core OEM business is performing better than expected, while expansion into Australia and Latin America is driving further growth.

The research firm reported that Shoals management remains confident in achieving mid- to high-30s gross margins and expects selling, general, and administrative expenses to stabilize.

According to Jefferies, these factors should lead to EBITDA margin expansion driven primarily by revenue growth for the solar and electrical balance of systems solutions provider.

In other recent news, Shoals Technologies Group announced the groundbreaking of the Maryvale Solar and Energy Storage Project in New South Wales, Australia, in collaboration with PCL Construction and Gentari. This project is set to deliver approximately 243 MW of solar generation capacity paired with 172 MW of battery storage, positioning it as one of Australia’s largest DC-coupled solar and battery energy storage systems. Additionally, Roth/MKM has upgraded Shoals Technologies’ stock to Buy, citing strong second-quarter results and an increase in 2025 revenue guidance. UBS has maintained a Buy rating on the stock but lowered its price target to $7.00, reflecting Shoals’ second-quarter adjusted EBITDA results that met analyst expectations. Jefferies also lowered its price target to $6.00 while maintaining a Buy rating, noting the company’s strong performance and increased revenue outlook for 2025. In leadership news, Shoals Technologies appointed Aaron Zadeh as Country Manager for the Pacific region, overseeing operations in Australia, New Zealand, and the Pacific islands. These developments come as the company continues to navigate market challenges in the solar sector.

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