Jefferies raises Array Tech stock target to $10, maintains Buy

Published 20/05/2025, 13:44
Jefferies raises Array Tech stock target to $10, maintains Buy

On Tuesday, Jefferies analyst Julian Dumoulin-Smith increased the price target for Array Technologies (NASDAQ:ARRY) stock from $7.00 to $10.00, while reiterating a Buy rating. Currently trading at $7.27 with a market capitalization of $1.1 billion, the stock has shown strong momentum with a 20% gain year-to-date, according to InvestingPro data. Dumoulin-Smith expressed confidence in the company as one of the more promising candidates to benefit from a broader recovery in the solar industry. Despite the stock’s recent gains, the analyst believes there is still potential for further growth, particularly as apprehensions about the House’s stance give way to the upcoming Senate draft legislation. This optimism is supported by InvestingPro data showing 11 analysts revising their earnings estimates upward for the upcoming period.

Array Technologies has been performing well, with over $1 billion in business-to-business transactions in the U.S., potential Value-Added Customer Agreements (VCAs), and anticipated higher Average Selling Prices (ASPs) due to steel prices in 2026. The analyst underscored that the stock is becoming more appealing compared to a broader set of industrial peers.

While acknowledging the near-term uncertainties surrounding the Inflation Reduction Act (IRA), Dumoulin-Smith suggested that this could present an opportunity for investors to consider entering the market anew. The maintained Buy rating and raised price target reflect Jefferies’ optimistic outlook on Array Technologies’ future performance and execution capabilities.

In other recent news, Array Technologies has reported a robust start to 2025, with earnings and revenue surpassing market expectations. The company announced an earnings per share (EPS) of $0.13, significantly higher than the forecasted $0.07, and revenue for the quarter reached $302.4 million, exceeding the anticipated $256.58 million. This performance was highlighted by a 97% year-over-year revenue growth, driven by significant volume growth and strategic innovations. Meanwhile, Goldman Sachs has increased its price target for Array Technologies to $11.00 from $9.00, maintaining a Buy rating. The firm cited potential benefits from policy changes as a factor in its optimistic outlook.

Jefferies also raised its price target to $7.00 from $6.00, reaffirming a Buy rating, influenced by the company’s strong U.S. bookings and fiscal year guidance confirmation. However, BMO Capital Markets maintained a Market Perform rating with a steady price target of $7.00, noting challenges such as tariff policy uncertainties and a lower fiscal year 2025 projection than anticipated. Despite these challenges, BMO acknowledged the positive response to Array Technologies’ recent earnings announcement. These developments reflect a mix of optimism and caution among analysts regarding Array Technologies’ future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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