UPDATE: Cowen Upgrades Shoals Technologies Group (SHLS) to Outperform; Preferred Beneficiary of IRA Bill

(Updated - September 16, 2022 9:12 AM EDT)

Cowen analyst Jeffrey Osborne upgraded Shoals Technologies Group (NASDAQ: SHLS) from Market Perform to Outperform with a price target of $37.50 (from $29.00).

The analyst commented, "Following the passage of the IRA bill, we see SHLS as our preferred beneficiary and see the company's expansion into EV systems along with its migration to BLA 2.0 serving as tailwinds to drive a tripling of revenue from '22 to '25. BLA 2.0 should drive a ~50% ASP increase per watt and leverage Shoals well as domestic utility scale solar ramps to 30-40GW mid-decade. We model ~$1bn in revenue in 2025 and $1.50 in EPS, well ahead of consensus of $890mn in revenue and $1.29 in EPS. We see the company generating steady cash flows in 4Q22 and beyond and in a position to pay down their debt by '25."

For an analyst ratings summary and ratings history on Shoals Technologies Group click here. For more ratings news on Shoals Technologies Group click here.

Shares of Shoals Technologies Group closed at $24.78 yesterday.

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