Shoals Technologies Group (SHLS – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Andrew Percoco from Morgan Stanley maintained a Buy rating on the stock and has a $7.00 price target.
Andrew Percoco has given his Buy rating due to a combination of factors that suggest potential upside for Shoals Technologies Group. Despite the recent challenges in gross margins and competitive pressures, the company’s strategic pricing actions are aimed at regaining market share and entering new markets, which could enhance its long-term growth prospects.
Furthermore, while the 2025 EBITDA guidance was slightly below expectations, the company’s valuation appears attractive with a significant upside potential based on the current price target. The stock is trading at a relatively low multiple, which suggests that the market may have already priced in some of the risks associated with the competitive environment. Therefore, Andrew Percoco maintains an optimistic outlook on the stock, anticipating that the company’s strategic initiatives will eventually lead to improved financial performance.
According to TipRanks, Percoco is a 4-star analyst with an average return of 7.9% and a 50.00% success rate. Percoco covers the Technology sector, focusing on stocks such as SolarEdge Technologies, Shoals Technologies Group, and Enphase Energy.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $6.00 price target.