S&P 500 slips, but losses kept in check as Nvidia climbs ahead of results
Investing.com - UBS raised its price target on FTC Solar Inc. (NASDAQ:FTCI) to $5.50 from $3.80 while maintaining a Neutral rating on the stock. The company has shown remarkable momentum, with shares surging over 20% in the past week and 65% over the last six months, according to InvestingPro data.
The price target increase reflects a valuation of 6x 3Q26-2Q27E cumulative EV/adjusted EBITDA, rolled forward from the previous 4x cumulative 2Q26-1Q27E EV/adjusted EBITDA multiple.
UBS cited FTC Solar’s secured near-term financing and greater policy clarity following passage of the OBBB as key factors for the higher multiple.
The new target multiple aligns with the trough multiple for FTC Solar’s peers over the past two years, which UBS considers reasonable given expected improved policy clarity and the company’s improving financial profile.
UBS maintains a discounted target multiple for FTC Solar compared to peers Nextracker (11x) and Array Technologies (8x) due to FTC Solar’s "greater risk profile given on-going operating losses."
In other recent news, FTC Solar Inc. reported its second-quarter 2025 earnings, showing a significant increase in revenue compared to the previous year. However, the company also experienced substantial losses during this period. These financial struggles have contributed to market uncertainties and affected investor sentiment. Despite innovative product updates and operational improvements, the company’s financial performance remains a concern. Analysts have not provided any upgrades or downgrades for FTC Solar Inc. at this time. The company’s recent developments highlight the ongoing challenges it faces in balancing innovation with financial stability. Investors are closely monitoring these factors as they consider their positions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.