This report is an updated version of the report published on 15 December 2025 at 1:37 PM EST.

Shoals Technologies Group, Inc. (NASDAQ: SHLS) 

Shoals Technologies Group, Inc. is engaged in providing electrical balance of system (or EBOS) solutions and components for solar, battery storage and electric vehicle (or EV) charging applications. 

Recommendation Rationale – SELL at USD 8.95 

• Trading Near Resistance Level:SHLS’s shares are facing resistance near current level. With its 14-day RSI showing a reading of ~55.12, the stock may witness consolidation in the near term.
• Rising Operating Expenses: Total operating expenses increased sharply to USD 31.6 million in Q3 FY25 from USD 20.9 million in Q3 FY24, signalling higher cost pressures.
• Cash Position Decline: Cash and cash equivalents dropped to USD 8.6 million as of 30 September 2025 from USD 23.5 million as of 31 December 2024.
• Overvalued Multiples: On a forward 12-month – key valuation multiples (EV/EBITDA, Price/Earnings, and Price/Cash Flow) are higher than the average of the Industrial sector.
• Business Risk: Strategic shift to battery energy storage and international expansion may face policy uncertainties, weak orders-to-shipments ratios, competition, compliance challenges, affecting performance

SHLS’s Daily Price Chart

Valuation Methodology: Price/Earnings Approach (FY December'26E) (Illustrative)

The stock might trade at a slight premium to peers, supported by revenue growth to USD 135.8 million in Q3 FY25 from USD 102.2 million in Q3 FY24 and a positive turnaround in basic EPS, alongside the company’s strategic expansion into international markets, BESS, data centers, and CC&I, while maintaining focus on domestic utility-scale solar and OEM segments.

For conducting the valuation, the following peers have been considered: LSI Industries Inc (NASDAQ: LYTS), Enphase Energy Inc (NASDAQ: ENPH), and Itron Inc (NASDAQ: ITRI).

Given the recent increase in the share price, and risks associated, it is prudent to sell the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current market price of USD 8.95, as of 15 December 2025 (12:40 EST). 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 15 December 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided have been achieved and is subject to the factors discussed above.

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.