Trump announces trade deal with EU following months of negotiations
On Friday, Mizuho (NYSE:MFG) Securities adjusted its outlook on Array Technologies (NASDAQ:ARRY), a company specializing in solar energy solutions. Maheep Mandloi, a Mizuho analyst, revised the price target downward to $9.00 from the previous $11.00, while maintaining a Neutral stock rating. This change reflects an 18% reduction in the price target. With the stock currently trading at $6.55, significantly below its 52-week high of $15.35, InvestingPro data shows the stock has declined over 53% in the past year.
Array Technologies reported its fourth-quarter earnings, which aligned with the company’s guidance. However, the previous quarter saw the company reduce its guidance. For 2025, Array anticipates a return to nominal growth, but its latest guidance suggests weaker than expected top-line growth and EBITDA margin, particularly due to market challenges in Brazil. InvestingPro analysis reveals the company’s revenue declined by 41.9% in the last twelve months, though it maintains a healthy current ratio of 2.28, indicating strong short-term liquidity.
The lowered price target from Mizuho comes as a result of Array’s lower sales projections and profitability concerns. Despite the reduction in the price target, Mizuho has chosen not to alter its Neutral stance on the stock.
Mandloi provided context for the adjustment, stating, "Array reported a Q4 largely in line with guidance, after cutting guidance last quarter. Company is returning to nominal growth in 2025, but guidance came in even weaker than consensus on top-line growth as well as EBITDA margin. Mainly, though, due to weakness in Brazil. We reduce our PT by 18% to $9 due to lower sales and profit. Our Neutral rating is unchanged."
Investors and market watchers will be observing how Array Technologies navigates the challenges in the Brazilian market, which have been a significant factor in the revised financial expectations. The company’s performance in the forthcoming year will be pivotal as it strives to achieve the nominal growth projected for 2025. According to InvestingPro Fair Value analysis, Array Technologies appears undervalued at current levels. Subscribers can access detailed financial health scores, 6 additional ProTips, and comprehensive valuation metrics in the Pro Research Report, available exclusively on InvestingPro.
In other recent news, Array Technologies Inc . reported its Q4 2024 earnings, revealing an earnings per share (EPS) of $0.16, which fell short of the expected $0.18. Despite this, the company’s revenue for the quarter was $275.2 million, slightly surpassing forecasts. The company experienced a 42% decline in full-year revenue compared to 2023, totaling $960 million, but managed to improve its adjusted gross margin to 34.1%. Array Technologies provided optimistic guidance for 2025, projecting revenue growth of 20% and forecasting revenue between $1.05 billion and $1.15 billion. The company also anticipates an adjusted gross margin of 29-30% and adjusted EBITDA between $180 million and $200 million. Analyst discussions highlighted the company’s strategic focus on domestic manufacturing capacity and innovation in product offerings. Additionally, Array Technologies has been working on a new state-of-the-art manufacturing facility in Albuquerque, New Mexico, as part of its supply chain resiliency strategy.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.