Array Technologies: Solid Demand and Backlog Offset by Weaker Margin Outlook, Justifying Hold Rating

Analyst David Arcaro of Morgan Stanley maintained a Hold rating on Array Technologies, retaining the price target of $9.00.

David Arcaro has given his Hold rating due to a combination of factors around Array Technologies’ recent performance and outlook. The company exceeded revenue expectations in 4Q25 and continued to build a solid backlog, with orders rising to $2.2 billion and book‑to‑bill remaining above 1x, which signals healthy demand and supports the near‑term growth narrative.

However, profitability came in below prior expectations, and the new 2026 guidance was weaker than he had anticipated, especially on margins. Arcaro now assumes meaningfully lower EBITDA for 2026 and 2027 amid a tougher competitive environment and flattish margin profile, leading him to cut his forecast and reassess valuation, which together justify maintaining a neutral Hold stance rather than a more bullish rating.

According to TipRanks, Arcaro is a 5-star analyst with an average return of 15.3% and a 68.00% success rate. Arcaro covers the Utilities sector, focusing on stocks such as Vistra Corp, Edison International, and FirstEnergy.

In another report released today, TipRanks – OpenAI also reiterated a Hold rating on the stock with a $11.00 price target.