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Investing.com - Mizuho (NYSE:MFG) raised its price target on Array Technologies (NASDAQ:ARRY) to $9.00 from $8.00 on Friday, while maintaining a Neutral rating on the solar tracking systems manufacturer. The stock, currently trading at $7.54, has shown strong momentum with a 34% gain over the past six months, according to InvestingPro data.
The price target increase follows Array’s announcement on June 18 that it plans to acquire APA Solar, a company specializing in engineered foundations and fixed-tilt manufacturing for solar installations.
Array Technologies expects the acquisition to be accretive to adjusted earnings per share in the first year, even before accounting for potential synergies between the two companies.
Mizuho noted that the acquisition mirrors a similar strategic move by competitor NXT, which previously acquired Ojjo and Solar Pile International, and pointed out that industry competitor Gamechange Solar also sells foundations and works with both Ojjo and APA.
The firm highlighted that Array’s acquisition values APA Solar at approximately 6x 2026 EBITDA, representing a discount compared to Array’s own valuation of approximately 8x 2026 EBITDA based on Mizuho’s previous estimates.
In other recent news, Array Technologies announced the acquisition of APA Solar for $179 million, a move that will expand its market by nearly 40%. The acquisition is expected to be accretive to adjusted earnings per share in the first year and will add domestically manufactured engineered foundations and fixed-tilt mounting systems to Array’s offerings. APA Solar generated approximately $129 million in revenue and $25 million in EBITDA for 2024, excluding 45X credits. The transaction will also enhance Array’s U.S. manufacturing capabilities with APA’s Ohio facility. Oppenheimer reiterated an Outperform rating on Array, emphasizing the geographical expansion and innovation in pilings technology that APA brings. Additionally, Jefferies raised the price target for Array Technologies to $10, maintaining a Buy rating, citing potential growth in the solar industry. At Array’s recent Annual Meeting of Stockholders, two board members were elected, and Deloitte & Touche LLP was ratified as the independent registered public accounting firm for 2025. However, a proposal on executive compensation did not pass.
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