FTC Solar's (FTCI) revamped product portfolio and recent orders support expectations for a strong revenue growth, with adjusted EBITDA set to be positive in 2028, UBS said in a note Friday.
The report said recent US and Australian orders and shipments start for the Fraser Coast project suggest that its revamped 1P and First Solar-compatible trackers are gaining acceptance.
UBS analysts expect a 40% revenue growth in 2026 and a 45% compound annual growth rate from 2027 to 2030, which should help the firm reach positive adjusted EBITDA in 2028.
But the share price appears to imply only about $5 million of EBITDA in 2028, nearly 50% below UBS estimate, they said.
"The depressed valuation underestimates the earnings power of the company's product-driven turnaround," the analysts said.
UBS upgraded the stock to buy from neutral and raised its price target to $3.60 from $3.50.
Price: $2.49, Change: $+0.36, Percent Change: +16.90%