Mizuho Securities analyst Maheep Mandloi has reiterated their bullish stance on SHLS stock, giving a Buy rating yesterday.
Maheep Mandloi’s rating is based on Shoals Technologies Group’s potential for revenue growth and margin recovery despite current pressures. The company has guided for an 8% year-over-year revenue increase by 2025, which, although slightly below previous estimates, remains within a promising range. Management’s confidence in achieving a long-term gross margin target of 40-45% through cost reductions and automation further supports this positive outlook.
Additionally, the company’s bookings continue to grow, and capital expenditures in 2025 are expected to enhance productivity by 2026. While competitive pressures have impacted gross margins recently, the transition to a new facility in Tennessee and strategic initiatives are anticipated to bolster future performance. These factors collectively underpin Mandloi’s decision to maintain a Buy rating with a price target of $6.00.
In another report released yesterday, Goldman Sachs also maintained a Buy rating on the stock with a $7.00 price target.
Based on the recent corporate insider activity of 40 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SHLS in relation to earlier this year.