Analyst Ameet Thakkar from BMO Capital maintained a Hold rating on Array Technologies (ARRY – Research Report) and keeping the price target at $8.00.
Ameet Thakkar has given his Hold rating due to a combination of factors impacting Array Technologies. The company recently released updated investor materials that revealed a significant decline in the average selling price (ASP) of their trackers, with a 14% year-over-year decrease in 2024. This decline was more severe than anticipated, particularly in international markets where ASPs fell by 24% compared to 2023 levels. Consequently, the company will need to increase shipment volumes substantially to meet its 2025 revenue targets.
Additionally, Thakkar noted that while domestic ASP declines were in line with expectations, the steeper-than-expected declines in international markets raise concerns about future pricing dynamics. The lack of pricing discipline in key international markets could lead to further ASP degradation in 2025. As a result, Thakkar has adjusted the revenue estimates for 2025 and 2026 downward by 4% each, maintaining a target price of $8 per share. Despite strong global demand for solar tracking equipment, these challenges contribute to the Hold rating.
Thakkar covers the Technology sector, focusing on stocks such as Sunnova Energy International, Enphase Energy, and First Solar. According to TipRanks, Thakkar has an average return of -8.0% and a 43.59% success rate on recommended stocks.
In another report released on March 17, RBC Capital also initiated coverage with a Hold rating on the stock with a $7.00 price target.