Morgan Stanley analyst Andrew Percoco maintained a Hold rating on Array Technologies (ARRY – Research Report) today and set a price target of $10.00.
Andrew Percoco has given his Hold rating due to a combination of factors impacting Array Technologies’ financial performance and outlook. The company’s fourth-quarter revenue was in line with expectations, but both the adjusted gross margin and adjusted EBITDA fell short, primarily due to a legacy fixed price volume commitment agreement. Additionally, a significant non-cash write-down related to the STI acquisition affected the financial results, driven by share price fluctuations.
Looking ahead to 2025, while revenue guidance aligns with expectations, the adjusted EBITDA is projected to fall short, with a notable decline in adjusted gross margins anticipated. This decline is attributed to the roll-off of amortization benefits from the previous year. Furthermore, the company’s U.S. operations show promise, but are counterbalanced by challenges in Brazil, including currency, tax, and tariff issues. These factors, coupled with de-bookings in Brazil as developers reassess agreements and await political developments, contribute to the Hold rating.
In another report released on February 25, Roth MKM also maintained a Hold rating on the stock with a $6.00 price target.
Based on the recent corporate insider activity of 16 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ARRY in relation to earlier this year.