BNP Paribas Upgrades U.S. Solar Supply Chain Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 25 2026
0mins
Should l Buy SHLS?
Source: seekingalpha
- Optimistic Market Outlook: Analyst Moses Sutton from BNP Paribas indicates that cumulative utility-scale solar capacity in the U.S. could exceed 250 gigawatts by 2030, significantly surpassing industry expectations of 150 to 200 gigawatts, highlighting robust growth potential in the solar market.
- Array Technologies Upgrade: BNP upgraded Array Technologies (ARRY) from Neutral to Outperform, raising its price target from $9 to $19, with projected 2026 earnings per share of $1.00, above the Street's $0.84 estimate, underscoring the company's pivotal role in accelerated deployment.
- Shoals Technologies Adjustment: BNP upgraded Shoals Technologies (SHLS) from Underperform to Neutral, increasing its price target from $5 to $9; despite margin pressures, the backlog for its battery energy storage systems surged from $18 million to $67 million, indicating strong traction in new product lines.
- First Solar Rating Maintained: BNP reiterated its Outperform rating on First Solar (FSLR) with a price target of $281, expecting 2026 revenue guidance of $5.05 billion, reflecting the company's competitive edge in the domestic market, particularly under supportive trade policies.
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Analyst Views on SHLS
Wall Street analysts forecast SHLS stock price to rise
13 Analyst Rating
11 Buy
2 Hold
0 Sell
Strong Buy
Current: 5.910
Low
7.00
Averages
11.04
High
15.00
Current: 5.910
Low
7.00
Averages
11.04
High
15.00
About SHLS
Shoals Technologies Group, Inc. is a provider of electrical balance of system (EBOS) solutions and components, including battery energy storage solutions (BESS) and original equipment manufacturer (OEM) components, for the global energy transition market. It encompasses all the components that are necessary to carry the electric current produced by solar panels to an inverter and ultimately to the power grid. It designs, manufactures and sells various products used by the solar and battery storage industries, including solar big lead assembly (BLA) solutions; homeruns, interconnection and extension solutions; combiners and re-combiners; load break disconnects and transition solutions; wireless performance monitoring; and BESS. Solar BLA solutions offers a range of plug-and-play cable and cabinet solutions that harness the power of solar energy. Load break disconnects and transition solutions provide solutions to reduce feeder sizes or disconnect systems for maintenance and shutdowns.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Forgent Rises on Positive Initiations Linked to Data Center Demand
Stock Performance: Forgent Power Solutions shares rose nearly 6% on Monday, reflecting positive market sentiment.
Analyst Coverage: Four Wall Street firms initiated coverage with bullish ratings, contributing to the stock's upward trend.
IPO Gains: The stock has increased over 30% since its initial public offering price of $27.
Current Trading Price: Forgent Power Solutions is currently trading around $35.
See More
Solar Stocks Plummeted This Week: Reasons for Ongoing Challenges.
- Earnings Decline: Three solar stocks dropped over 30% after disappointing earnings reports, with a fourth stock falling 14%, indicating financial struggles in the industry.
- Industry Challenges: The solar sector is facing significant challenges, including tariff impacts on profit margins, unfavorable federal energy policies, and weaker-than-expected demand.
- Lack of Solutions: There are no straightforward or immediate solutions to address the financial and operational issues currently affecting the solar industry.
- Market Sentiment: The sharp declines in stock prices reflect growing concerns among investors regarding the future viability and profitability of solar companies.
See More
Shoals Technologies Group Shares Decline Following Earnings Report
- Earnings Miss: Shoals Technologies reported an adjusted EPS of 10 cents, falling short of the consensus estimate of 14 cents, indicating pressure on profitability that may dampen investor confidence.
- Sales Beat: The company achieved sales of $148.3 million, exceeding analyst expectations of $145.4 million; however, the earnings miss led to a tepid market reaction, negatively impacting share performance.
- Backlog Insights: As of December 31, 2025, the backlog and awarded orders stood at $747.6 million, indicating future revenue potential, yet concerns over gross margin may hinder stock recovery.
- Analyst Downgrades: Needham analyst lowered the price target from $14 to $12, reflecting caution regarding the company's future gross margin outlook, suggesting ongoing market pressure on the stock.
See More
BNP Paribas Upgrades U.S. Solar Supply Chain Outlook
- Optimistic Market Outlook: Analyst Moses Sutton from BNP Paribas indicates that cumulative utility-scale solar capacity in the U.S. could exceed 250 gigawatts by 2030, significantly surpassing industry expectations of 150 to 200 gigawatts, highlighting robust growth potential in the solar market.
- Array Technologies Upgrade: BNP upgraded Array Technologies (ARRY) from Neutral to Outperform, raising its price target from $9 to $19, with projected 2026 earnings per share of $1.00, above the Street's $0.84 estimate, underscoring the company's pivotal role in accelerated deployment.
- Shoals Technologies Adjustment: BNP upgraded Shoals Technologies (SHLS) from Underperform to Neutral, increasing its price target from $5 to $9; despite margin pressures, the backlog for its battery energy storage systems surged from $18 million to $67 million, indicating strong traction in new product lines.
- First Solar Rating Maintained: BNP reiterated its Outperform rating on First Solar (FSLR) with a price target of $281, expecting 2026 revenue guidance of $5.05 billion, reflecting the company's competitive edge in the domestic market, particularly under supportive trade policies.
See More
Shoals Technologies Group Reports Record Q4 and Full Year 2025 Financial Results
- Record Quarterly Revenue: Shoals Technologies Group reported fourth-quarter revenue of $148.3 million, a 39% increase year-over-year, primarily driven by heightened demand for products catering to utility-scale solar projects, thereby solidifying the company's leadership in the energy transition market.
- Strong Backlog: As of December 31, 2025, the company's backlog and awarded orders totaled $747.6 million, an 18% increase from year-end 2024, indicating sustained demand for the company's solar products and supporting future growth potential.
- Adjusted EBITDA Growth: The fourth-quarter adjusted EBITDA reached $30.3 million, reflecting a 14% increase from the prior year, showcasing the company's ongoing improvements in operational efficiency and cost control, which further bolsters investor confidence.
- Optimistic 2026 Outlook: The company expects first-quarter revenue to range between $125 million and $135 million, with full-year revenue projected between $560 million and $600 million, demonstrating strong market demand and the effectiveness of strategic investments.
See More
Shoals Technologies Group Reports Q4 2025 Earnings Highlights
- Significant Revenue Growth: Shoals Technologies Group reported approximately $148 million in revenue for Q4 2025, representing a 38.6% year-over-year increase, alongside a record backlog of $748 million, indicating strong market demand and business expansion potential.
- International Business Expansion: International revenue surged from less than $1 million in 2024 to approximately $13 million in 2025, showcasing the company's successful global positioning, particularly in the community, commercial & industrial (CC&I), and OEM sectors.
- Gross Margin Challenges: Despite achieving a gross profit of $46.9 million with a gross margin of 31.6%, the margin fell short of expectations due to increased tariffs, labor, and shipping costs, reflecting short-term profitability pressures.
- Optimistic Future Outlook: Shoals expects Q1 2026 revenue to range between $125 million and $135 million, with full-year revenue projections of $560 million to $600 million, demonstrating confidence in future growth despite challenges from legal expenses and operational transitions.
See More
Forgent Rises on Positive Initiations Linked to Data Center Demand
Stock Performance: Forgent Power Solutions shares rose nearly 6% on Monday, reflecting positive market sentiment.
Analyst Coverage: Four Wall Street firms initiated coverage with bullish ratings, contributing to the stock's upward trend.
IPO Gains: The stock has increased over 30% since its initial public offering price of $27.
Current Trading Price: Forgent Power Solutions is currently trading around $35.
See More
Solar Stocks Plummeted This Week: Reasons for Ongoing Challenges.
- Earnings Decline: Three solar stocks dropped over 30% after disappointing earnings reports, with a fourth stock falling 14%, indicating financial struggles in the industry.
- Industry Challenges: The solar sector is facing significant challenges, including tariff impacts on profit margins, unfavorable federal energy policies, and weaker-than-expected demand.
- Lack of Solutions: There are no straightforward or immediate solutions to address the financial and operational issues currently affecting the solar industry.
- Market Sentiment: The sharp declines in stock prices reflect growing concerns among investors regarding the future viability and profitability of solar companies.
See More
Shoals Technologies Group Shares Decline Following Earnings Report
- Earnings Miss: Shoals Technologies reported an adjusted EPS of 10 cents, falling short of the consensus estimate of 14 cents, indicating pressure on profitability that may dampen investor confidence.
- Sales Beat: The company achieved sales of $148.3 million, exceeding analyst expectations of $145.4 million; however, the earnings miss led to a tepid market reaction, negatively impacting share performance.
- Backlog Insights: As of December 31, 2025, the backlog and awarded orders stood at $747.6 million, indicating future revenue potential, yet concerns over gross margin may hinder stock recovery.
- Analyst Downgrades: Needham analyst lowered the price target from $14 to $12, reflecting caution regarding the company's future gross margin outlook, suggesting ongoing market pressure on the stock.
See More
BNP Paribas Upgrades U.S. Solar Supply Chain Outlook
- Optimistic Market Outlook: Analyst Moses Sutton from BNP Paribas indicates that cumulative utility-scale solar capacity in the U.S. could exceed 250 gigawatts by 2030, significantly surpassing industry expectations of 150 to 200 gigawatts, highlighting robust growth potential in the solar market.
- Array Technologies Upgrade: BNP upgraded Array Technologies (ARRY) from Neutral to Outperform, raising its price target from $9 to $19, with projected 2026 earnings per share of $1.00, above the Street's $0.84 estimate, underscoring the company's pivotal role in accelerated deployment.
- Shoals Technologies Adjustment: BNP upgraded Shoals Technologies (SHLS) from Underperform to Neutral, increasing its price target from $5 to $9; despite margin pressures, the backlog for its battery energy storage systems surged from $18 million to $67 million, indicating strong traction in new product lines.
- First Solar Rating Maintained: BNP reiterated its Outperform rating on First Solar (FSLR) with a price target of $281, expecting 2026 revenue guidance of $5.05 billion, reflecting the company's competitive edge in the domestic market, particularly under supportive trade policies.
See More
Shoals Technologies Group Reports Record Q4 and Full Year 2025 Financial Results
- Record Quarterly Revenue: Shoals Technologies Group reported fourth-quarter revenue of $148.3 million, a 39% increase year-over-year, primarily driven by heightened demand for products catering to utility-scale solar projects, thereby solidifying the company's leadership in the energy transition market.
- Strong Backlog: As of December 31, 2025, the company's backlog and awarded orders totaled $747.6 million, an 18% increase from year-end 2024, indicating sustained demand for the company's solar products and supporting future growth potential.
- Adjusted EBITDA Growth: The fourth-quarter adjusted EBITDA reached $30.3 million, reflecting a 14% increase from the prior year, showcasing the company's ongoing improvements in operational efficiency and cost control, which further bolsters investor confidence.
- Optimistic 2026 Outlook: The company expects first-quarter revenue to range between $125 million and $135 million, with full-year revenue projected between $560 million and $600 million, demonstrating strong market demand and the effectiveness of strategic investments.
See More
Shoals Technologies Group Reports Q4 2025 Earnings Highlights
- Significant Revenue Growth: Shoals Technologies Group reported approximately $148 million in revenue for Q4 2025, representing a 38.6% year-over-year increase, alongside a record backlog of $748 million, indicating strong market demand and business expansion potential.
- International Business Expansion: International revenue surged from less than $1 million in 2024 to approximately $13 million in 2025, showcasing the company's successful global positioning, particularly in the community, commercial & industrial (CC&I), and OEM sectors.
- Gross Margin Challenges: Despite achieving a gross profit of $46.9 million with a gross margin of 31.6%, the margin fell short of expectations due to increased tariffs, labor, and shipping costs, reflecting short-term profitability pressures.
- Optimistic Future Outlook: Shoals expects Q1 2026 revenue to range between $125 million and $135 million, with full-year revenue projections of $560 million to $600 million, demonstrating confidence in future growth despite challenges from legal expenses and operational transitions.
See More
