Street View: Analysts expect Shoals to benefit from foraying into new markets

Shoals Technologies

06/09/2024 16:18

** Shares of solar components supplier Shoals Technologies
 SHLS.O  down 2.10% at $5.37 amid a broader decline in the solar
sector
    ** SHLS at its analyst day on Sept. 5 announced plans to
diversify into international solar, commercial solar, battery
energy storage systems and data centers
    
    POTENTIAL FOR COMPANY DESPITE NEAR-TERM SOLAR SECTOR GLOOM
    ** Truist Securities ("buy") cuts PT to $8 from $10, expects
lower 2025 revenue of $425 mln vs prior est. of $583 mln; says
it will come down to how the company executes growth strategies
    ** However, brokerage says it remains bullish on long-term
growth outlook for SHLS and utility-scale solar firms
    ** J.P.Morgan("overweight") cuts PT to $14 from $19, says
investors will likely remain skeptical regarding near-term
potential upside until visibility improves
    ** Roth MKM ("neutral") cuts PT to $6 from $7, says "the
company is executing well on what it can control, though the
overall industry certainly remains challenged"
    ** TD Cowen ("buy", PT: $11) sees the company capturing
market share on ability to reduce the cost to install EBOS
(electrical balance of systems) solutions for solar energy
projects 
        

 (Reporting by Pooja Menon in Bengaluru)
 ((Pooja.Menon@thomsonreuters.com))