SHLS - Shoals Technologies cut at Barclays on risk to 2023 outlook

2023-05-02 12:21:51 ET

Shoals Technologies ( NASDAQ: SHLS ) -10.6% in Tuesday's trading after Barclays downgraded the stock to Underweight from Equal Weight with a $19 price target, cut from $27, citing risks to the company's 2023 outlook and the stock's "pricey valuation."

Barclays analyst Christine Cho estimated Shoals ( SHLS ) made $457M in new bookings in 2022, and even with a 100% conversion rate, the result would fall short of the low end of the company's $470M-$510M guidance range.

A large portion of Shoals' ( SHLS ) "backlog and awarded orders is likely tied to new products and new geographical regions, which we have less visibility on," Cho wrote.

More on Shoals Technologies:

• See financial and valuation comparisons to sector peers
• SA analysis: Shoals Technologies Ramps Up International Expansion Efforts
• Stock price return: 24% loss YTD, 65% gain during the past 12 months

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