Shoals Technologies Group (NASDAQ:SHLS) shares surged over 12% after the solar-energy equipment maker reported stronger-than-expected Q1 results and raised its full-year forecast.

Shoals posted EPS of $0.14 on revenue of $105.1 million, topping the analyst consensus for earnings of $0.10 on sales of $97.56M. Sales surged 55% year-over-year while backlog increased by 74% to $527.5M.

“Solar market conditions remain favorable, both for the industry as a whole and for Shoals specifically. We believe we are just starting to realize the full power of the Shoals platform and we could not be more excited about the future,” said Jeff Tolnar, president and interim chief executive officer of Shoals.

On a full-year basis, Shoals sees revenue in the range of $480M-$510M, ahead of the consensus at $489M. This represents an upgrade to the prior forecast of $470M-$510M.

The adjusted EBITDA is now seen between $145M and $160M, up from the prior $140M-$155M range.

Goldman Sachs analysts hiked the price target to $25 per share from the prior $22. Similarly, Truist analysts also raised the price target as they went to $35.

“SHLS continues to surprise to the upside on both growth and margins, in our view offering strong support that 1) utility-scale solar growth remains robust despite broader macro uncertainty, and 2) the company’s LT run-rate margin profile could be well above what is currently baked into shares,” the analysts wrote in a client note.

“While we look for continued top tier execution to give us LT confidence in the repeatability of SHLS leading 46% 1Q23 GMs (34% EBITDA margins), we see shares entering into a new period of outperformance as we expect Street ests to trend up & shares to rerate higher.”