Array Technologies price target lowered to $21 from $23 at BofA

BofA lowered the firm’s price target on Array Technologies to $21 from $23 and keeps a Buy rating on the shares. In its updated valuation framework, BofA now gives Array full credit for 45X tax credits, consistent with other clean tech peers, and also consistent with its treatment of peers, it now values EBITDA exclusive of tax credits in the firm’s EV/EBITDA valuation. The changes to the firm’s valuation methodology, in conjunction with its peer multiple mark-to-market, nets to a reduction in the firm’s price target. A series of guidance cuts driven by customer delays have pressured the shares of Array year-to-date and BofA expects volatility in the near-term leading up to the Q4 call where management typically issues fiscal year guidance, the analyst noted.