Array Technologies, the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Dimple Gosai from Bank of America Securities reiterated a Sell rating on the stock and has a $8.00 price target.
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Dimple Gosai has given his Sell rating due to a combination of factors affecting Array Technologies. Despite some short-term gains from APA and U.S. market share recovery, the company faces challenges with organic growth visibility and persistent gross margin pressures. The order book has increased, but future growth is heavily reliant on a rebound outside the U.S., which could dilute gross margins. Additionally, tariffs, rising steel costs, and limited pass-throughs of certain costs are expected to drag on profitability, with management acknowledging a loss in EBITDA margin due to these factors.
Competition is intensifying as domestic supply increases, limiting opportunities for sustained EBITDA growth and potentially compressing average selling prices. Although there was a revenue uplift for FY25, gross margin targets have been lowered, and the impact of tariffs and other costs is expected to persist through 2026. The recent acquisition of APA adds scale but has a muted impact on near-term earnings, with integration costs and delayed monetization of benefits further weighing on performance. Overall, these factors contribute to a cautious outlook, justifying the Sell rating.
ARRY’s price has also changed dramatically for the past six months – from $5.150 to $8.370, which is a 62.52% increase.