Analyst Andrew Percoco of Morgan Stanley maintained a Hold rating on Array Technologies (ARRY – Research Report), retaining the price target of $6.00.
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Andrew Percoco’s rating is based on a combination of factors related to Array Technologies’ recent financial maneuvers and the implications for its future performance. The company has recently announced the acquisition of APA Solar and has priced $300 million in convertible notes, using a significant portion of the proceeds to reduce existing debt. This acquisition is expected to increase the company’s revenue and EBITDA by 2026, with a slight improvement in the EBITDA margin.
Despite these positive adjustments, the analyst maintains a Hold rating as the discounted cash flow-derived price target remains unchanged at $6, suggesting a limited upside potential from the current stock price. Additionally, even though the acquisition contributes to an increase in earnings per share, the overall valuation metrics imply a downside risk. These factors collectively justify the Hold rating, indicating that while there are improvements, they may not be sufficient to warrant a more bullish outlook.
Percoco covers the Technology sector, focusing on stocks such as Array Technologies, Shoals Technologies Group, and Sunrun. According to TipRanks, Percoco has an average return of 13.0% and a 56.63% success rate on recommended stocks.
In another report released yesterday, Bank of America Securities also maintained a Hold rating on the stock with a $8.00 price target.