Array Technologies, the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Jeff Osborne from TD Cowen maintained a Hold rating on the stock and has a $7.00 price target.
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Jeff Osborne’s rating is based on a combination of factors that highlight both the strengths and challenges facing Array Technologies. On the positive side, the company has shown robust demand, which has led to an increase in guidance, primarily driven by volume rather than price. The backlog remains strong at $1.8 billion, with a significant portion of orders coming from strategic partners such as utilities and developers. This positions Array as a key supplier in the market, especially as there is heightened quoting activity following recent Treasury guidance.
However, there are some concerns that justify the Hold rating. Earlier in the year, gross margins were negatively impacted by legacy-priced volume commitment agreements, although these have been adjusted recently. Additionally, tariffs are expected to have a slight negative impact on gross margins for the year. While the company is expected to benefit from margin improvements in the latter half of 2025, these mixed factors contribute to a cautious outlook, leading to the Hold recommendation.
In another report released on July 31, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $7.00 price target.