Shares of Shoals Technologies Group (SHLS) are surging in pre-market trading, up 5.36% following a significant target price upgrade from Wells Fargo. The move comes as investors react positively to the increased confidence in the company's prospects.

Wells Fargo has raised its target price for Shoals Technologies Group to $10 from the previous $6, representing a substantial 66.67% increase. This upgrade suggests that the financial institution sees considerable upside potential in the stock, based on its analysis of the company's fundamentals and market position.

The target price raise could signal growing optimism about Shoals Technologies Group's future performance in the renewable energy sector. As the company specializes in electrical balance of systems (EBOS) solutions for solar energy projects, this positive outlook may reflect broader trends in the adoption of solar technology and supportive policy environments for renewable energy.