FTC Solar double upgraded to Buy at Bank of America By Investing.com


FTC Solar (FTCI) double upgraded to Buy at Bank of America

By Senad Karaahmetovic 

Bank of America analysts upgraded shares of FTC Solar (NASDAQ:) to Buy from Underperform with the price target raised to $3.50 from the prior $2 per share.

While the analysts note that Street confidence is “limited,” they still see a runway to a recovery in volumes and margins. Moreover, BofA is growing more positive on the company’s cost control, given discipline/stability through a product launch and ramp cycle.

“We see a nominally modest improvement in FTCI’s revenue, we model significant GM accretion because of fixed cost coverage. Given FTCI’s very muted topline throughout 2022, given UFLPA-induced module supply challenges, the nominally modest step up in revenues we model throughout 2023 and 2024 is highly accretive to FTCI’s gross and EBITDA margin profile,” they wrote in a client note.

“Despite the execution risk ahead, we see backlog momentum as a leading indicator of revenue, and critically meaningful margin inflection. While clearly high risk, we see outsized return potential as well,” the analysts concluded.

FTCI shares trade 10% lower today.