Goldman Sachs has reaffirmed a Buy recommendation on Shoals Technologies Group (NASDAQ: SHLS) and maintained a $1.00 price target following an initial finding by the U.S. International Trade Commission (ITC) that a rival imported products infringing on Shoals’ patent. The reaffirmation comes as the stock has posted strong gains recently, including a 10.4% rise over the past week and a 134.4% increase over the last year.
The ITC issued the initial determination on February 6, concluding that Voltage violated Shoals’ patent rights by importing LYNX trunk bus products into the United States. An Administrative Law Judge determined that Voltage breached Section 337 of the Tariff Act of 1930 by bringing in products alleged to infringe Shoals’ Big Lead Assembly solution.
Goldman Sachs characterized the ITC’s initial determination as a positive development for Shoals, while also noting that the matter is not yet final. A final initial determination (FID) - which could be subject to a Presidential review - is expected by June 2026. The firm also flagged that Voltage could seek to appeal the latest decision, which might extend the period of legal uncertainty for Shoals by another 12 to 18 months.
Shoals is awaiting an appeal review after a prior final initial determination was reversed in February 2025, a procedural history the bank cited when assessing the outlook. Goldman’s view is that the recent determination provides constructive validation of Shoals’ infringement claims, but the firm stressed that legal follow-up remains a material factor for the company’s near-term narrative.
Market participants and other analysts have reacted with mixed signals. Jefferies increased its price target for Shoals to $12.00 while maintaining a Buy rating, pointing to reported growth in Battery Energy Storage System bookings as a driver of upside. In contrast, Morgan Stanley lowered its stance from Overweight to Equalweight and set a $9.50 price target, citing a changed outlook.
These divergent analyst actions underscore a split in expectations over Shoals’ business trajectory and how the legal matter will influence commercial momentum. For now, the company’s share price reflects enthusiasm following the ITC’s initial determination, but the combination of potential appeals and the prior reversal of a final finding leave room for further volatility.
Investors will be watching the appeals process and the scheduled FID window closely, as the timing and outcome of those steps will materially affect the degree and duration of the overhang tied to the dispute.