By Marc Guberti
Copyright benzinga
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Shoals Technologies Group Inc. (SHLS) stock has rallied this year on solar energy demand, thanks to its electrical balance of system (EOS) solutions for solar energy projects. Strong Q2 revenue growth, rising net profit margins, and a record backlog indicate that the company is growing at a good pace. However, looming federal cuts to solar tax credits could hurt the entire industry.
In this article, we’ll look at SHLS’s latest share price, Wall Street sentiment, multiyear price forecasts, and the key factors that are playing a critical role in the company’s path going forward.
Current Stock Overview
Market Cap: $1.3 billion
Trailing P/E Ratio: 63.83
Forward P/E Ratio: 13.44
1-Year Return: 33%
2025 YTD: 35%
Shares of Shoals Technologies are trading around $7.50 after climbing by more than 30% year-to-date. Rising revenue and profits have been key factors in the stock’s gain. Q2 revenue increased by 12% year-over-year, while net income was up by 17%. A record backlog, combined with optimistic Q3 guidance, suggests that impressive results will continue for the rest of the year.
The impending end of federal tax credits may reduce solar energy demand. Shoals Technologies also has a few major clients that make up the majority of its revenue, and the company recently warned that “a loss of one or more of our significant customers” can materially hurt the business.
SHLS has a consensus Hold rating from 24 analysts, according to Benzinga. The average price target is $9.26 per share, which suggests a moderate upside from current levels. The highest price target is $46, and the lowest is $4. The three most recent ratings suggest a near-term average target of $8.67, suggesting a 16% upside.
Quick Snapshot Table of Predictions & Methodology for Forecasting
Bull & Bear Case
Solid results and company forecasts have helped drive Shoal Technologies’ stock higher, but there are questions about the sustainability of its rally.
Shoal Technologies has posted revenue and net income with double-digit year-over-year growth ratesThe company currently has a record backlog, which can make revenue more predictableQ3 guidance was very promising and suggests improved year-over-year growth rates
Most of Shoal Technologies’ revenue is tied to a few customersFederal cuts to solar energy and new restrictions on energy tax credits could slow the deployment of utility-scale solar projectsThe stock’s year-to-date gain is higher than its year-over-year revenue growth, which may result in a future correction
Stock Price Prediction for 2025
CoinCodex projects that Shoals Technologies stock will be down slightly for the rest of the year. However, the high end of the forecast shows a slight gain. The fact that stock gains have outpaced revenue growth this year may prompt some investors to stay on the sidelines.
Stock Price Prediction for 2026
The high end of CoinCodex’s forecast shows a slight loss, while the losses moderate on the lower end of the range. Shoals Technologies may face headwinds if the end of federal solar tax credits drags down the entire industry.
Stock Price Prediction for 2030
CoinCodex forecasts a sharp downturn with a higher drop at the lowest end of the price range. The company may reach this level if significant customers walk away or a lack of tax benefits hurts the entire industry’s outlook. A robust solar market and the addition of new customers can mitigate this forecast.
Investment Considerations
SHLS stock has enjoyed a strong year-to-date rally thanks to its firm position in the solar energy industry. The second quarter offered optimistic news, such as double-digit year-over-year growth in revenue and profits, plus a record backlog and optimistic Q3 guidance. The end of solar tax credits looms large over 2026 results, as it’s unclear how it will impact the entire industry. Some investors may wait to see how large customers respond to policy changes before buying SHLS stock.
Frequently Asked Questions