On Thursday, Truist Securities adjusted its outlook for Shoals Technologies Group (NASDAQ: SHLS), a company specializing in electrical balance of systems solutions for solar energy projects. The firm has revised the price target downwards to $20.00 from the previous $23.00, while reiterating its Buy rating on the stock.
The revision follows the company's announcement of its 2024 guidance, which revealed a significant deviation from Wall Street's expectations. The guidance indicated a weaker performance in the first half of 2024, echoing a similar sentiment expressed by ARRY the day before. Despite these challenges, Shoals Technologies has observed some improvements in project delays as of February.
Shoals Technologies' guidance suggests a more robust second half of the year, albeit with increased risks due to the reliance on this later period for recovery. However, the company has noted a positive trend with approximately $175 million in awarded orders anticipated for 2025 and beyond. This forward-looking optimism is contingent on the company's ability to ramp up activities in the latter half of 2024.
In response to the updated company guidance, Truist Securities has modified its estimates and reaffirmed its positive stance on Shoals Technologies, albeit with a reduced price target. The firm anticipates that if Shoals Technologies can achieve its targets for the second half of the year, it will be well-positioned to maintain robust volume levels moving forward.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.