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On Monday, Goldman Sachs updated its outlook on Array Technologies (NASDAQ:ARRY) by increasing the price target to $11.00, up from the previous $9.00, while reiterating a Buy rating on the shares. This adjustment reflects a more optimistic valuation of the company’s earnings potential, as indicated by the firm’s analyst. The company’s stock has shown significant momentum, gaining over 12% in the past week. According to InvestingPro data, Array Technologies appears undervalued based on its Fair Value analysis, with 11 analysts recently revising their earnings expectations upward.
The revised price target is founded on a price-to-earnings (P/E) multiple of 13 times, which is an increase from the earlier 11 times multiple. This change is attributed to improved comparative company analysis, spurred by the potential for tariff and policy relief which could benefit Array Technologies. The P/E multiple is applied to the firm’s projected earnings per share (EPS) for the next four quarters, labeled as Q5 through Q8 in the analyst’s forecast. With a market capitalization of $1.17 billion and a healthy current ratio of 2.39, the company maintains strong liquidity to support its growth initiatives.
The analyst’s commentary highlighted the rationale behind the new price target, noting the potential upside from policy changes. However, the analyst also cautioned investors about several risks facing Array Technologies. These risks encompass competitive pressures, the potential loss of customers, the need to maintain patent protection, fluctuating market demand, policy shifts, and the availability and pricing of products from suppliers. For a deeper understanding of Array Technologies’ risk factors and growth potential, InvestingPro offers comprehensive research reports with detailed financial health scores and additional insights available exclusively to subscribers.
Array Technologies, a company specializing in solar tracking solutions, has been under the watch of investors who are keen on understanding how market dynamics and policy developments could impact its financial performance.
Goldman Sachs’ updated valuation of Array Technologies stock comes as the solar industry anticipates regulatory changes that could influence the sector’s growth trajectory. The firm’s stance remains positive, with the Buy rating suggesting confidence in the company’s ability to navigate the risks and capitalize on the opportunities ahead.
In other recent news, Array Technologies reported a strong start to 2025, with earnings and revenue surpassing market expectations. The company announced earnings per share of $0.13, significantly higher than the forecasted $0.07, and revenue of $302.4 million, exceeding the anticipated $256.58 million. Array Technologies experienced a 97% year-over-year revenue growth for Q1 2025, driven by significant volume growth and strategic innovations. BMO Capital Markets maintained a Market Perform rating for Array Technologies, citing concerns over potential project delays due to tariff policy uncertainties, despite acknowledging the positive aspects of the company’s current bookings. Meanwhile, Jefferies raised its price target for Array Technologies to $7.00, up from $6.00, maintaining a Buy rating, highlighting the company’s robust U.S. bookings and confidence in achieving full-year guidance. Analysts at Jefferies noted that while there may be some project pushouts in the latter half of 2026, these could be offset by higher average selling prices on steel. The firm’s analysts expressed a positive outlook on Array Technologies’ business prospects, considering the balance of opportunities and challenges the company may face in the near to medium term.
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