Array Technologies initiated with an Overweight at Wells Fargo

Wells Fargo analyst Michael Blum initiated coverage of Array Technologies with an Overweight rating and $28 price target. The analyst projects Array to grow revenues at a CAGR of 10%, driven by policy support, Solar’s low cost, and state/federal utility mandates to de-carbonize and achieve net zero targets. While Blum expects near-term growth could be muted due to restrictive government policies on solar panel imports, he likes the long-term prospects for utility-scale solar and sees Array at an inflection point to higher margins and free cash flow generation.