Shares of Shoals Technologies got a big boost Thursday courtesy of Goldman Sachs analyst Brian Lee, who has upgraded to ‘buy’ a number of solar technology names because their valuations have dropped in recent months.
In a note to investors, Lee said the fundamentals of the solar energy market are still in good shape — Shoals executives recently said their core business grew 12 percent in the first quarter and produced higher margins — and that many investors are accounting for only some of the possible catalysts from the Biden administration.
Many companies in the solar space have lost a lot of ground in recent months — the $3.1 billion Invesco Solar ETF (Ticker: TAN) is down 25 percent year to date — and Shoals hasn’t been able to escape the downdraft since going public in late January. After initially selling to the public at $25, the shares at one point topped $44 before beginning a slide that (maybe) ended earlier this month around $21.
On Thursday, Shoals (Ticker: SHLS) was up nearly 10 percent to $23.61. Lee’s new price target for the stock is $33.