Solar power could be a great idea in general. That’s giving stocks like solar installation company Array Technologies (NASDAQ:ARRY) a bit of an edge in the market. While the stock is down a bit in Friday afternoon’s trading, the little extra edge provided by Cantor Fitzgerald’s recent coverage should help it come back around.
Cantor Fitzgerald, by way of analyst Derek Soderberg, started coverage on Array stock at “Overweight.” A note to investors asserted the company was poised to take advantage of a “…multi-decade growth cycle for utility-scale solar installations”. Many of the common problems facing such an operation shouldn’t be a factor, either; Soderberg noted that the company has a solid track record and a solid supply chain. Just to round it out, it also has an unusual product offering.
The note also referred to Array’s ability to offer a low-cost alternative for public utilities looking to expand their capacity. The nature of most countries’ power grids these days makes enhancing capacity a good idea. That’s true both in terms of supplying more power and having redundant options on hand in case something goes wrong.
It also benefits from environmental, social, and governance (ESG) mandates that draw investors to solar power options like Array. Projections suggest the global clean energy market will hit over $2 trillion by 2030. That may make companies like Array a unique opportunity.
Soderberg, meanwhile, is hardly alone in his assessment, as Array Technologies has a Moderate Buy consensus rating. In addition, the stock’s average price target of $25.57 gives it an upside potential of 23.83%.
