UPDATE: Goldman Sachs Downgrades Shoals Technologies Group (SHLS) to Sell
- Futures climb as banking crisis fears abate
- Lululemon surges 15% on earnings, guidance beat; Stifel says shares still 'undervalued'
- Pick up 'resilient regional banks' post SVB and Signature Bank collapses - CFRA
- UBS brings back Sergio Ermotti as CEO to oversee Credit Suisse takeover
- Micron Q2 results fall short of estimates amid weaker demand; bottom seen as deeper than expected
Get Alerts SHLS Hot Sheet
9 Buy, 6 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 11 | New: 31
Join SI Premium – FREE
Goldman Sachs analyst Brian Lee downgraded Shoals Technologies Group (NASDAQ: SHLS) from Buy to Sell with a price target of $21.00 (from $23.00).
The analyst comments "We downgrade shares of SHLS shares to Sell from Buy, with (16%) downside to our revised 12-month target of $21 ($23 prior) vs.~14% average upside across our solar coverage. Our Sell thesis is predicated upon our view that: 1) backlog growth has stagnated since the end of 2021, and we see downside risk to topline consensus expectations heading into 2023 which appear to be embedding an aggressive share gain and/or significant growth from non-solar / international expansion over the next 12 months, 2) there is muted operating leverage in the model as the company has not been able to drive significant earnings growth despite strong revenue growth in recent years, 3) current valuation of ~40x FY2 PE appears full given the aforementioned downside risks, and we believe the relative risk/reward skews less favorably at these levels compared to stocks with similar utility-scale exposure that have more attractive valuation and/or leverage to IRA benefits as outlined throughout this note, including ARRY, FSLR and MAXN. Since being added to the Americas Buy List on 5/19/2021, SHLS shares are up +16% vs. RUT (18%)."
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 $27.76 yesterday.
You May Also Be Interested In
- Goldman Sachs Upgrades Marathon Petroleum (MPC) to Buy
- BofA explains why you should own stocks over bonds
- Needham & Company sees positive risk/reward on Rivian (RIVN) into 1Q delivery data
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Downgrades
Related EntitiesGoldman Sachs, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!