Shoals Technologies Group, Inc. (NASDAQ:SHLS) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Analyst consensus: Shoals carries an average recommendation of "Moderate Buy" from 17 analysts (10 Buy, 6 Hold, 1 Sell) with a one‑year average price target of about $9.57, though several brokers have recently trimmed targets.
• Q1 beat and raised guidance: The company reported EPS of $0.07 (vs. $0.06) and revenue of $140.6M (vs. $129.2M), up ~74% YoY, and lifted FY revenue guidance to $600–$640M (Q2: $150–$170M) with a record backlog of $758M.
• Operational developments and risks: Shoals opened a 638,000 sq. ft. Tennessee manufacturing facility to expand capacity, but posted a small GAAP net loss (~$0.3M) and noted margin pressure and execution/operational strain as backlog converts.

Shares of Shoals Technologies Group, Inc. (NASDAQ:SHLS - Get Free Report) have earned an average recommendation of "Moderate Buy" from the seventeen analysts that are currently covering the firm, Marketbeat reports. One equities research analyst has rated the stock with a sell recommendation, six have issued a hold recommendation and ten have assigned a buy recommendation to the company. The average 1 year price objective among brokers that have issued ratings on the stock in the last year is $9.5714.

Several equities research analysts recently weighed in on the company. Roth Mkm dropped their price target on Shoals Technologies Group from $15.00 to $10.00 and set a "buy" rating on the stock in a research report on Tuesday, February 24th. Royal Bank Of Canada lowered their price objective on Shoals Technologies Group from $10.00 to $9.00 and set an "outperform" rating for the company in a research note on Wednesday, February 25th. Barclays lowered their price objective on Shoals Technologies Group from $10.00 to $9.00 and set an "overweight" rating for the company in a research note on Wednesday, February 25th. Morgan Stanley lowered their price objective on Shoals Technologies Group from $9.50 to $8.50 and set an "equal weight" rating for the company in a research note on Wednesday, February 25th. Finally, BNP Paribas Exane upgraded Shoals Technologies Group from an "underperform" rating to a "neutral" rating and set a $9.00 price objective for the company in a research note on Wednesday, February 25th.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in SHLS. GAMMA Investing LLC raised its stake in Shoals Technologies Group by 57.7% during the fourth quarter. GAMMA Investing LLC now owns 3,756 shares of the company's stock valued at $32,000 after buying an additional 1,375 shares during the last quarter. USA Financial Formulas purchased a new position in Shoals Technologies Group during the fourth quarter valued at $49,000. State of Alaska Department of Revenue purchased a new position in shares of Shoals Technologies Group in the third quarter worth $54,000. Dynamic Technology Lab Private Ltd purchased a new position in shares of Shoals Technologies Group in the first quarter worth $57,000. Finally, Tower Research Capital LLC TRC raised its stake in shares of Shoals Technologies Group by 468.3% in the second quarter. Tower Research Capital LLC TRC now owns 15,519 shares of the company's stock worth $66,000 after purchasing an additional 12,788 shares during the last quarter.

Shoals Technologies Group News Roundup

Here are the key news stories impacting Shoals Technologies Group this week:

• Positive Sentiment: Q1 beat and strong top-line: Shoals reported Q1 EPS of $0.07 (vs. $0.06 consensus) and revenue of $140.6M (vs. $129.2M consensus); revenue rose ~74% YoY. This is a primary near-term catalyst for the rally. Read More.
• Positive Sentiment: Raised guidance and backlog: Management raised FY and Q2 revenue guidance (FY: $600M–$640M; Q2: $150M–$170M) and reported record backlog/awarded orders of $758M, supporting revenue visibility. Read More.
• Positive Sentiment: Analyst bullishness: JPMorgan raised its price target to $10 and upgraded SHLS to "Overweight," while Needham reaffirmed a "Buy" with a $12 target — both signal dealer conviction and can attract flows. Read More. Read More.
• Positive Sentiment: Capacity expansion: Shoals opened a 638,000 sq. ft. Tennessee manufacturing facility — a capacity and execution positive for future order fulfillment. Read More.
• Neutral Sentiment: Earnings materials / call: The company posted its slide deck and hosted an earnings call; these provide more detail on margins, supply chain and backlog conversion but contain mixed operational commentary. Read More.
• Neutral Sentiment: Shareholder approvals: Investors backed the board slate, executive pay and auditor — removes near-term governance overhang. Read More.
• Negative Sentiment: Small GAAP net loss and operational strain: Despite adjusted EBITDA of $21.1M, Shoals reported a GAAP net loss of ~$0.3M and management noted "growth amid strain" on the call, highlighting margin pressure and execution risks as backlog converts. Read More. Read More.

Shoals Technologies Group Trading Up 2.5%

NASDAQ SHLS opened at $8.33 on Thursday. The company has a quick ratio of 1.32, a current ratio of 2.03 and a debt-to-equity ratio of 0.23. Shoals Technologies Group has a twelve month low of $3.81 and a twelve month high of $11.36. The firm has a market capitalization of $1.39 billion, a PE ratio of 41.65, a P/E/G ratio of 0.92 and a beta of 1.74. The stock's 50 day moving average is $6.73 and its 200 day moving average is $8.34.

Shoals Technologies Group (NASDAQ:SHLS - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The company reported $0.07 earnings per share for the quarter, beating the consensus estimate of $0.06 by $0.01. Shoals Technologies Group had a return on equity of 10.08% and a net margin of 6.27%.The company had revenue of $140.56 million for the quarter, compared to analyst estimates of $129.16 million. The firm's quarterly revenue was up 74.4% compared to the same quarter last year. Research analysts forecast that Shoals Technologies Group will post 0.37 earnings per share for the current fiscal year.

About Shoals Technologies Group

Shoals Technologies Group, Inc is a leading provider of electrical balance-of-system (BOS) solutions for the solar energy industry. The company designs, engineers and manufactures a comprehensive portfolio of products, including junction boxes, combiner boxes, cable assemblies, power distribution units and monitoring systems. These components are critical to interconnecting photovoltaic modules, optimizing energy output and ensuring safe, reliable performance across solar installations.

Founded in 1996 and headquartered in Portland, Tennessee, Shoals has grown its manufacturing and operations footprint to serve customers around the globe.

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