Morgan Stanley has downgraded Shoals Technologies Group Inc (SHLS) to Equal-Weight from Overweight, effective December 15, 2025. The current share price stands at $8.67.
This downgrade underscores increased caution regarding the company's outlook, potentially reflecting concerns about competitive pressures, market conditions, or execution risks that could impact performance.
Shoals Technologies, headquartered in Portland, Tennessee, specializes in electrical balance of system solutions for solar energy projects. The company designs, manufactures, and sells various products for the solar and battery storage industries. Its market capitalization is approximately $1.3 billion, with a trailing P/E ratio of 40.15 and an EPS of 0.20.
Upcoming earnings reports include estimates of $0.12 EPS on revenue of $141.0 million for August 3, 2026, and $0.10 EPS on revenue of $123.0 million for May 4, 2026. Recent earnings performance showed Q3 2025 EPS at $0.12, slightly below the estimate of $0.13, marking a 7.8% surprise to the downside.
Analyst consensus remains predominantly bullish, with 6 Strong Buy, 14 Buy, 5 Hold, 1 Sell, and no Strong Sell ratings across 26 analysts as of December 1, 2025. This update provides insight into the shifting perspectives among analysts regarding Shoals Technologies Group Inc's future prospects.