ARRY: Rising Power Demand And New Trackers Will Shape Future Upside

Array Technologies' updated analyst price target has shifted to $7.25, with analysts citing refreshed estimates ahead of Q2 results and pointing to broader power demand growth across data centers, electrification, utility-scale solar, and battery storage as key sector drivers.

Analyst Commentary

Analyst sentiment on Array Technologies reflects a mix of interest in long term power demand trends and caution around what that means for the stock in the near term. Recent research updates cluster around revised price targets ahead of Q2 results, with several bearish analysts marking expectations to the current US$7.25 level while keeping a more measured stance on the shares.

One recent move came from Susquehanna, where the analyst lowered the price target on Array Technologies to US$7.25 from US$9.50 while maintaining a Neutral rating. The rationale centers on refreshed estimates as the market weighs how rising demand for data centers, electrification, utility scale solar, and battery storage might translate into actual orders and profitability for the company.

Bearish Takeaways

• Bearish analysts are compressing price targets toward the mid single digit range. This implies caution around how much future power demand is already reflected in Array Technologies' current valuation.
• Frequent target revisions ahead of Q2 results highlight concern that execution on projects and timing of large scale orders may not fully align with earlier expectations for the stock.
• References to utility scale solar and battery storage as broad sector drivers suggest that while the end markets are seen as attractive, some analysts question how consistently this demand will convert into sustainable growth for Array Technologies.
• The combination of Neutral ratings with reduced targets signals that certain bearish analysts see limited upside in the near term relative to perceived risks around growth pacing and delivery against updated estimates.

What’s in the News for Array Technologies

• Array Technologies reported surpassing 100 GW of solar tracker product deliveries across more than 30 countries, highlighting the scale of its utility scale solar footprint and international reach, source: analyst news summary.
• Company leadership pointed to this 100 GW milestone as aligned with a focus on domestic manufacturing and reshoring solar supply chains to support electricity demand in the US and abroad, source: analyst news summary.
• Array Technologies announced the launch of DuraTrack D2S, a dual row solar tracker designed for faster installation, better terrain tolerance, and lower maintenance costs in international markets, with the first commercial project under construction in Spain in early 2026, source: company product announcement.
• The DuraTrack D2S product includes features such as ARRAY Wind XP passive wind stow technology, OmniTrack terrain following capability, and SmarTrack enabled controls. This reflects an expansion of the existing DuraTrack architecture into a two row format preferred in many EMEA projects, source: company product announcement.
• Array Technologies released an enhanced version of its OmniTrack terrain following tracker, increasing flex capability between adjacent posts to up to 2° to provide more design flexibility and help reduce grading and construction costs on complex sites, source: company product announcement.

Valuation Changes for Array Technologies

• Fair Value updated to $7.25 from $8.00, reflecting a modest reduction in the modeled upside for Array Technologies.
• Discount Rate moved slightly higher to 11.72% from 11.48%, indicating a small increase in the required return used in the analysis.
• Revenue Growth is now modeled at 9.61% compared with the prior 9.43%, a small upward adjustment to expected top line expansion.
• Net Profit Margin was revised to 2.64% from 2.61%, a minimal shift that keeps profitability assumptions broadly stable.
• Future P/E was reduced to 37.84x from 42.25x, suggesting a lower valuation multiple being applied to Array Technologies in forward estimates.