ITC 337 decision a ‘negative surprise’ for Shoals Technologies, says Roth MKM

The U.S. International Trade Commission on Wednesday issued its final determination, reversing its initial determination in Shoals Technologies (SHLS)’ Section 337 case, Roth MKM analyst Philip Shen tells investors in a research note. The decision, which effectively reversed the administrative law judge’s initial determination and found no violation, terminating the case, comes as a negative surprise for Shoals, and it appears that the ITC Commission took issue with the term “aperture” and language used by Shoals in its case filings. Shoals has 60 days to appeal, Roth notes. The firm has a Neutral rating and $5 price target on the shares.