Array Technologies (ARRY – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Ameet Thakkar from BMO Capital maintained a Hold rating on the stock and has a $8.00 price target.
Ameet Thakkar has given his Hold rating due to a combination of factors affecting Array Technologies. The company’s revenue guidance for 2025 aligns with expectations, but there are concerns about the competitive positioning of its tracker systems compared to peers. The book-to-bill ratio and backlog conversion timeline suggest some challenges in maintaining a strong market position.
Additionally, the company’s adjusted EBITDA guidance for 2025 fell short of consensus estimates, primarily due to lower-than-expected gross margins. This shortfall is partly attributed to the oversight of a one-time tax credit benefit in 2024, which affected the perception of margins. Despite a stable demand forecast for solar tracking equipment, there are worries about Array Technologies potentially losing market share, leading to a cautious outlook and the Hold rating.
In another report released today, TD Cowen also maintained a Hold rating on the stock with a $7.00 price target.