Array Technologies (ARRY): Is Renewed Analyst Optimism Justified by Current Valuation After New Partnerships and Acquisition?

Array Technologies (ARRY) sparked investor interest this week following upbeat coverage by Baird and Deutsche Bank. The company’s recent acquisition of APA Solar and new regional partnerships have contributed to speculation about a possible turnaround.

See our latest analysis for Array Technologies.

Momentum for Array Technologies appears to be building, with positive analyst coverage and new strategic moves fueling renewed optimism. While the one-year total shareholder return sits just above 0.4%, these recent developments suggest investors are looking past earlier headwinds and anticipating potential growth ahead.

If you’re curious about where else investor interest might be heating up, now is a great time to broaden your horizons and discover fast growing stocks with high insider ownership

With the stock now trading just shy of analyst price targets and momentum building, the question is whether Array Technologies still offers value at current levels or if the market is already factoring in a brighter future for the company.

Most Popular Narrative: 2.4% Undervalued

According to the most widely followed narrative, Array Technologies’ fair value sits just above the latest closing price, indicating that there is still headroom for upside if the story plays out as forecasted. The narrative highlights innovation and strategic expansion as major elements behind this valuation.

Enhanced product mix and technology innovation, with over 35% of the order book for recently launched, higher-value products targeting challenging terrains and emerging extreme weather concerns. This is increasing pricing power and supporting margin expansion, thus improving gross margins and earnings.

Read the complete narrative.

Want to know what is fueling this optimism? There is a bold forecast for both revenue and earnings, as well as an eye-catching profit turnaround built into this narrative. The financial leap that justifies this price target is not what you would typically expect from a company still in turnaround mode. Curiosity piqued? Click through to uncover the strategic assumptions shaping this fair value story.

Result: Fair Value of $9.30 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent regulatory uncertainty and volatile commodity prices could disrupt Array Technologies' growth story and challenge the assumptions behind bullish forecasts.

Find out about the key risks to this Array Technologies narrative.

Build Your Own Array Technologies Narrative

If you have your own take or want to dig into the numbers yourself, you can build a personalized analysis in just a few minutes. Do it your way

A great starting point for your Array Technologies research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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