Array Technologies' Long-Term Prospects For Utility-Scale Solar Wins Analyst Conviction

Wells Fargo analyst Michael Blum initiated coverage on Array Technologies Inc ARRY with an Overweight rating and a price target of $28.
The rating reflected a blend of the analyst's target P/E multiple, target EV/EBITDA multiples, and discounted cash flow analysis.
Array is the second-largest solar tracker company in the world, selling rotating mount systems ("trackers") for utility-scale solar installations that enable solar panels to track the sun and more effectively capture solar energy.
Blum project ARRY to grow revenues at a CAGR (2022-2030E) of 10% (BNEF utility solar growth forecast), driven by policy support, solar's low cost, and state and federal utility mandates to de-carbonize and achieve net zero targets.
While expecting near-term growth could be muted due to restrictive government policies on solar panel imports, the analyst likes the long-term prospects for utility-scale solar and see ARRY at an inflection point to higher margins and FCF generation.
Also Read: First Solar Fundamentals Likely To Come Under Pressure In 2023, Analyst Downgrades Stock With 66% Price Target Cut
Price Action: ARRY shares traded lower by 6.77% at $20.37 on the last check Tuesday.

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