In a report released today, Jeff Osborne from TD Cowen maintained a Buy rating on FTC Solar (FTCI – Research Report), with a price target of $5.00.
Jeff Osborne has given his Buy rating due to a combination of factors that highlight both the potential and challenges facing FTC Solar. The company has shown impressive sequential revenue growth and an increasing contracted backlog, which are positive indicators of its business momentum. Additionally, FTC Solar’s management has maintained its goal of reaching adjusted EBITDA breakeven by 2025, supported by project execution in the latter half of the year. The company’s cost control measures and readiness for domestic content further bolster its long-term prospects.
However, Osborne also acknowledges some challenges, such as the pressure on margins due to the company’s current scale and the sensitivity to project timelines, which could impact revenue recognition. Despite these hurdles, the increase in backlog, particularly with Tier 1 contract wins, and the strategic agreement with Recurrent Energy, backed by Canadian Solar, enhance FTC Solar’s position in the market. These factors collectively contribute to Osborne’s optimistic outlook and the Buy rating for FTC Solar’s stock.
Osborne covers the Technology sector, focusing on stocks such as Cerence, Enphase Energy, and First Solar. According to TipRanks, Osborne has an average return of -1.1% and a 37.83% success rate on recommended stocks.