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Investing.com - Goldman Sachs maintained its buy rating and $11.00 price target on Array Technologies (NASDAQ:ARRY), currently trading at $6.32, following the company’s recent debt offering. According to InvestingPro data, analyst targets range from $5.50 to $13.00, with the stock currently showing signs of being undervalued.
On Monday, Array Technologies priced $300 million of new convertible senior notes in a private offering. The notes, due in 2031, will be used to retire existing debt, fund capped call transactions, and support other corporate purposes.
The debt offering comes shortly after Array announced a $210 million acquisition on June 17, which will require an expected cash outlay of $168 million due in the third quarter of 2025.
Goldman Sachs views the debt raise as a prudent financial move that will help reduce Array’s cost structure while providing additional working capital, despite the company likely having sufficient cash to cover the upcoming acquisition costs.
The solar tracking systems manufacturer’s stock continues to be rated as a buy by Goldman Sachs, which maintains its $11.00 price target.
In other recent news, Array Technologies announced plans to issue $250 million in convertible senior notes due 2031 through a private placement. The company intends to use the proceeds to repay $150 million of its existing term loan and fund capped call transactions to mitigate potential stock dilution. Additionally, Array aims to repurchase some of its outstanding 1.00% Convertible Senior Notes due 2028 with the remaining funds. In a strategic move, Array Technologies is set to acquire APA Solar for $179 million, expanding its market reach by nearly 40%. The acquisition is expected to enhance earnings per share in the first year and broaden Array’s manufacturing capabilities in the U.S. with APA’s Ohio facility. Mizuho (NYSE:MFG) raised its price target for Array Technologies from $8.00 to $9.00, maintaining a Neutral rating, following the acquisition news. Oppenheimer also reiterated its Outperform rating and a $13.00 price target, citing APA’s expertise in challenging geographic regions as a key advantage. These developments highlight Array Technologies’ strategic initiatives to strengthen its financial position and expand its product offerings.
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