TD Cowen analyst Jeff Osborne has maintained their neutral stance on ARRY stock, giving a Hold rating on May 2.
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Jeff Osborne has given his Hold rating due to a combination of factors impacting Array Technologies. The company reported a solid start to the year with a notable increase in revenue and backlog, indicating a recovery in market share and strong execution capabilities. However, despite these positive developments, the company’s adjusted gross margin experienced a decline, primarily due to a low-margin legacy project and an unfavorable international mix.
While Array Technologies has managed to mitigate tariff risks effectively and has extended its revolver, providing financial flexibility, there are concerns about the negative operating cash flow and free cash outflow in the recent quarter. Additionally, the shifting timelines of some projects and the unresolved high-cost Series A preferred shares on the balance sheet add to the uncertainty. These mixed factors contribute to the Hold rating, as they present both opportunities and challenges for the company’s future performance.
According to TipRanks, Osborne is an analyst with an average return of -1.6% and a 38.59% success rate. Osborne covers the Technology sector, focusing on stocks such as First Solar, Itron, and SolarEdge Technologies.
In another report released on May 2, Roth MKM also maintained a Hold rating on the stock with a $5.00 price target.