Shoals Technologies Group Inc. (NASDAQ:SHLS) is one of the best solar energy stocks to buy right now. UBS raised its price target for Shoals Technologies Group to $12 from $9 on November 5, maintaining its Buy rating. The firm pointed to a record project backlog as a sign of rising demand for clean energy solutions, fueled by expanding data center operations and tech sector growth.

Shoals’ growing footprint in battery storage and data center markets also played a role in UBS’s bullish stance. These segments are seen as key drivers of future revenue, positioning the company to benefit from the accelerating shift toward electrification and renewable infrastructure.

On November 4, Shoals Technologies Group Inc. (NASDAQ:SHLS) reported a solid third quarter, with revenue rising nearly 33% to $135.8 million, driven by strong demand and increased project volume.

Gross profit more than doubled to $50.3 million, helped by the absence of warranty expenses that impacted last year’s results. Operating income reached $18.7 million, and net income improved to $11.9 million. Adjusted EBITDA came in at $32 million, while the company’s backlog and awarded orders climbed to $720.9 million, reflecting steady growth in both domestic and international markets.

Looking ahead, Shoals expects fourth-quarter revenue between $140 million and $150 million, with adjusted EBITDA projected in the $35 million to $40 million range. CEO Brandon Moss highlighted the company’s momentum in utility-scale solar and its expansion into new high-growth areas. Despite market volatility, Shoals sees strong customer interest and is confident that recent investments in production capacity will support continued success into the next year.

Shoals Technologies Group Inc. (NASDAQ:SHLS) provides electrical balance-of-system solutions for the solar, energy storage, and electric vehicle (EV) charging industries. Its products include cable assemblies, combiners, and monitoring systems for connecting solar panels and storage systems to the power grid.

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Disclosure: None. This article is originally published at Insider Monkey.