Solv Energy (MWH) is expected to grow revenue at a mid-teens CAGR through 2030, outpacing a largely flat US utility-scale solar market, supported by rising battery storage demand, backlog growth and expansion in operations and maintenance services, UBS Securities said in a note Thursday.

The analyst said the company's growth outlook is supported by a highly contracted backlog of about $8.2 billion, providing strong earnings visibility and near-term execution confidence, with its exposure to both solar and storage offering structural advantages versus broader industry trends.

UBS said SOLV Energy's outperformance is largely reflected in expectations after recent gains, noting that while it is still expected to outpace the broader solar market, the growth gap versus the industry is likely to narrow over time.

According to the note, the firm said that already well-recognized guidance strength and elevated valuation levels limit further upside, resulting in a more balanced risk-reward profile despite ongoing structural growth advantages.

UBS downgraded the rating on the stock to neutral from buy, while raising its price target to $50 from $42.

Shares of SOLV Energy were down more than 4% in Thursday trading.

Price: 44.70, Change: -2.08, Percent Change: -4.44