Balancing Act: Strong Performance Amidst Market Uncertainties Justifies Hold Rating on Array Technologies

TD Cowen analyst Jeff Osborne has maintained their neutral stance on ARRY stock, giving a Hold rating on May 10.

Jeff Osborne has given his Hold rating due to a combination of factors including Array Technologies’ solid performance and robust backlog but tempered by uncertainties in the market and vagueness around certain financial credits. Array’s strong backlog of $2.1 billion, which notably does not require sharing of IRA credits, and the company’s ability to lower steel costs and redesign products have improved its competitive pricing. This has helped regain booking momentum with $400 million in new net bookings this quarter and increased win rates in the U.S. Additionally, management’s confidence in maintaining gross margin strength and improved free cash flow contribute to the positive outlook.
However, Osborne’s cautious stance is influenced by the lack of clarity from management regarding the 45X credits and margin expectations for recent bookings. This vagueness, combined with uncertainty about market dynamics in 2025, suggests potential risks. Even though the industry appears rational at present, the potential for ‘free money’ and the appeal of reporting mid to high-30s gross margins could lead to pressure from large customers for a share of the profits. This balance of strong operational performance and market and financial uncertainties justifies Osborne’s Hold recommendation for Array Technologies.

ARRY’s price has also changed slightly for the past six months – from $13.770 to $12.510, which is a -9.15% drop .

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Array Technologies (ARRY) Company Description:

Array Technologies Inc manufacturers of ground-mounting systems used in solar energy projects. The company’s product is an integrated system of steel supports, electric motors, gearboxes and electronic controllers referred to as a single-axis tracker that move solar panels throughout the day to maintain an optimal orientation to the sun, which increases their energy production. Its operations are in United States, Australia, and Rest of the World with United States deriving majority of the revenue.