ARRY Turnaround Progress Will Drive Margin Recovery Through 2026 Outlook

Analysts have modestly lifted their price target on Array Technologies, reflecting greater confidence in the company’s turnaround prospects and improved positioning for 2026 and 2027, as evidenced by multiple recent target hikes to the $9 to $15 range and reiterated Buy ratings.

Analyst Commentary

Street research on Array Technologies has turned incrementally more constructive, with a growing group of bullish analysts highlighting execution on the turnaround plan and improved medium term visibility, even as a minority of bearish analysts continues to flag macro and policy risks that could constrain valuation.

Bullish Takeaways

• Bullish analysts argue the turnaround plan is gaining traction, noting healthier operations in the U.S. market and a growing perception that Array could emerge as a sector winner in 2026 and 2027, which supports higher target prices in the low to mid teens.
• Several research notes cite a credible path back to normalized EBITDA margins in the mid to high teens by 2026, and frame this margin recovery as a key driver of multiple expansion from currently depressed levels.
• Initiation reports with Buy or Outperform ratings emphasize management's focus on higher quality customers, backlog growth and selective acquisitions. These reports suggest a more durable growth profile and improved earnings visibility.
• Upward target revisions, in some cases to the $12 to $15 range, reflect increased confidence that current valuation does not fully discount the potential earnings recovery and balance sheet deleveraging over the next two to three years.

Bearish Takeaways

• Bearish analysts remain cautious on the near term earnings trajectory, highlighting mixed quarterly results and a weaker implied EBITDA outlook, which could limit upside until execution consistently tracks guidance.
• Concerns about rising tariff burdens in key sourcing regions are viewed as incremental headwinds to the fiscal 2025 margin framework, and raise the risk that current medium term targets may prove too ambitious.
• Some research continues to see the stock's risk or reward skewed to the downside in the short run, and argues that policy uncertainty and cost inflation may not be fully reflected in consensus expectations.
• Neutral stances with only modest target increases signal that, despite progress on bookings and backlog, the path to sustained, profitable growth is still execution dependent and vulnerable to external shocks.

What's in the News

• Array Technologies is among a group of clean energy companies potentially affected by a White House "kill list" that could cancel an additional $12 billion in federal funding for clean energy projects, heightening policy risk for the sector (Semafor).
• Array Technologies issued updated earnings guidance for 2025, projecting revenue in the range of $1.25 billion to $1.28 billion, which aligns with analyst expectations for a medium term recovery in demand and top line growth (company guidance filing).

Valuation Changes

• Fair Value, expressed in dollars per share, has risen slightly from $10.89 to $10.93, reflecting a modest upward adjustment in the intrinsic valuation estimate.
• Discount Rate has fallen slightly from 11.11 percent to 11.04 percent, indicating a marginally lower perceived risk profile or cost of capital.
• Revenue Growth expectations have edged down from 5.78 percent to 5.60 percent, implying a small reduction in projected top line expansion.
• Net Profit Margin has risen slightly from 6.42 percent to 6.45 percent, signaling a modest improvement in anticipated profitability.
• Future P or E multiple has increased marginally from 22.71x to 22.75x, suggesting a slightly higher valuation multiple applied to forward earnings.