2023-03-28 12:54:03 ET
Array Technologies ( NASDAQ: ARRY ) +3.7% in Tuesday's trading as Truist Securities upgraded the stock to Buy from Hold with a $26 price target, up from $22, saying the solar equipment manufacturer has made notable progress addressing past challenges pertaining to its product portfolio, execution and margin structure, as seen with margins returning to ~20% in Q4.
"While Q1 will see seasonal weakness, we ultimately view Array as well positioned to deliver notable growth and free cash flow for FY 2023, while benefiting from domestic and international tailwinds for utility-scale solar," Truist's Jordan Levy wrote.
The analyst said he views the current ~3x valuation gap between Array ( ARRY ) and solar/tracker peers as unsustainable, and he expects to see multiple expansion toward the ~14x peer average vs. 11x currently.
Array Technologies ( ARRY ) recently reported Q4 adjusted earnings of $0.10/share on revenues of $402M .
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Array Technologies raised at Truist on improving execution, margin structure