Electrical, safety and infrastructure solutions provider Atkore (NYSE: ATKR) recently revealed that it will be developing a new manufacturing line in Arizona to cater to Nextracker, a global solar tracker company.
Following the news, shares of the company slipped 2.3% to close at $102.18 on Friday.
To help Nextracker deliver its services and products more efficiently, Atkore has expanded and reconfigured its Arizona facility with a new capacity, which will be dedicated to Nextracker’s products.
The CEO of Atkore, Bill Waltz, said, “Atkore’s new production line is dedicated to Nextracker and will help them quickly deploy their cutting-edge solar technology across the Southern and Southwestern U.S. We’re proud to provide sustainable products that support renewable energy initiatives and help our customers achieve their goals – ensuring we deliver on our commitment to building better together.”
Recently, RBC Capital analyst Deane Dray reiterated a Buy rating on the stock with a price target of $170, which implies upside potential of 66.4% from current levels.
Overall, the Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on two Buys and one Hold. ATKR’s average price target of $144.33 implies that the stock has upside potential of 41.3% from current levels. Shares have gained 33.3% over the past year.
TipRanks’ Stock Investors tool shows that top investors currently have a Positive stance on ATKR. Further, 3.1% of top portfolios tracked by TipRanks increased their exposure to ATKR stock over the past 30 days.
As the solar energy space is gaining mainstream acceptance rapidly, Atkore’s strategic move to revamp its manufacturing facility in Arizona can prove to be beneficial for the company.
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