This analyst loves SOLV Energy

Roth Capital Markets analyst Philip Shen initiated coverage of SOLV Energy (SOLV Energy Stock Quote, Chart, News, Analysts, Financials NASDAQ:MWH) with a “Buy” rating and a $35.00 price target, citing the company’s strong positioning in the utility-scale solar and storage market.

In a March 9 report, Shen said SOLV Energy is a Tier-1 engineering, procurement and construction provider focused exclusively on utility-scale solar and energy storage projects, with operations and maintenance capabilities that differentiate it from many peers.

“Given the company’s superior margin profile, strong return-on-capital metrics, and increasing exposure to high-growth secular trends like increasing power demand and AI/datacenters, we believe (SOLV) should trade at a premium to the peer group median,” Shen said.

The analyst noted the company’s approximately $8-billion backlog provides revenue visibility through 2027, while a large pipeline of opportunities supports continued growth toward the end of the decade.

Shen said SOLV performs roughly 95% of its work internally, a factor customers frequently cite as contributing to strong project execution and reliability.

“We believe (SOLV) is one of the best utility-scale solar/storage EPCs, and our checks and proprietary survey results support this view,” he said, adding that customers consistently highlight the company’s high-quality and on-time delivery.

He also pointed to the company’s operations and maintenance segment as a strategic advantage.

“While (SOLV)’s O&M is modest as a mix of revenue, we believe O&M supports winning more business and enables (SOLV) to capture premium margins,” Shen said.

SOLV Energy currently manages about 18 gigawatts of assets under operations and maintenance, providing insight into operational challenges that helps inform its construction practices and improve project quality.

“This capability represents a key point of differentiation that enables higher win ratios and better margins,” Shen said.

Looking ahead, Shen forecasts revenue growth of roughly 15% annually through 2030, supported by expanding demand for renewable power, continued market share gains and strategic expansion into adjacent services.

The company has also broadened its capabilities through acquisitions. In 2025, SOLV Energy completed two deals aimed at expanding its in-house capabilities in high-voltage transmission and distribution as well as foundation drilling.

Shen said the company stands to benefit from several powerful industry trends, including the rapid expansion of AI-driven data centres, large-scale investment in electricity grid upgrades and the broader global energy transition.

“The company has the tailwind of a number of powerful megatrends, and we believe some bottlenecks faced by the industry could improve soon,” he said.

Shen forecasts SOLV Energy will generate approximately $870-million in Adjusted EBITDA on revenue of $2.49-billion in fiscal 2025, increasing to $1.17-billion in Adjusted EBITDA on revenue of $3.78-billion in fiscal 2026.

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