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Shoals Technologies Group, a leading provider of electrical balance of system solutions for solar energy projects, saw its stock price slide to $2.76, near its 52-week low. According to InvestingPro data, the company maintains a "GOOD" financial health score despite recent market challenges, with analysts setting price targets ranging from $4 to $10.50. This latest price level reflects a significant downturn for the company, which has experienced a stark 1-year change with its stock value plummeting by -77.06%. Investors are closely monitoring SHLS as it navigates through a tough market environment, with the hope that the company can leverage its industry position to recover from this low point. InvestingPro analysis suggests the stock is currently undervalued, with 14 more exclusive insights available to subscribers, including detailed profitability metrics and growth forecasts in the comprehensive Pro Research Report.
In other recent news, Shoals Technologies Group reported its fourth-quarter earnings, posting adjusted earnings per share of $0.08, which fell short of analyst estimates by $0.01. Despite this, the company exceeded revenue expectations with $107 million, compared to the anticipated $101.98 million, although this was a decrease from the previous year’s $130.4 million. The company provided guidance for 2025 that was below Wall Street’s expectations, forecasting first-quarter revenue between $70-80 million, against the consensus estimate of $109.04 million. For the full year 2025, Shoals anticipates revenue between $410-450 million, slightly below analyst predictions of $443.2 million.
CEO Brandon Moss attributed the cautious outlook to disruptions in the U.S. utility-scale solar market, citing political changes, supply chain challenges, and high interest rates. Despite these challenges, Shoals ended the fourth quarter with a backlog and awarded orders totaling $634.7 million, marking a 6.5% increase from the previous quarter. Oppenheimer analyst Colin Rusch reiterated an Outperform rating with a $10.00 price target, noting that while Shoals’ fourth-quarter results were largely in line with expectations, the guidance for 2025 might underwhelm investors. Meanwhile, Jefferies analyst Julian Dumoulin-Smith adjusted the price target for Shoals to $4.60 from $5.20, maintaining a Hold rating due to a mixed near-term outlook. Dumoulin-Smith expressed confidence in Shoals’ long-term prospects, highlighting the company’s domestic supply chain as a stabilizing factor amidst industry volatility.
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