Array Technologies (ARRY): Valuation Spotlight After Intertek Validation of 2kV Solar Trackers

If you have been watching Array Technologies (ARRY) lately, the latest news might give you pause before making a move. Intertek’s validation that Array’s DuraTrack and OmniTrack systems fully meet the technical, safety, and performance benchmarks for next-generation 2kV solar projects is more than a formality. This could change how developers approach system design. Array is now able to serve emerging high-voltage projects right out of the box, offering efficiency gains and cost reductions that matter in today’s solar landscape.

This announcement follows a period of growing momentum. Over the past year, Array Technologies’ stock is up by nearly 49% and has surged over 63% in the past month, fueled by both its product innovations and clear signals from the industry about where solar is heading. Although the company presented at the ROTH Solar & Storage Symposium recently, it is these forward-looking product moves that are catching investors’ attention, especially after a tough multi-year stretch marked by a three-year return well below its one-year rebound.

After this dramatic swing back, can Array’s new validation unlock further upside for shareholders, or is the market already pricing in the company’s forward potential?

Most Popular Narrative: 3.5% Undervalued

The current narrative points to Array Technologies as modestly undervalued, with analysts suggesting there is still room for upside in the stock price based on future earnings and revenue growth.

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 increases pricing power and supports margin expansion, thus improving gross margins and earnings.

How does a solar technology company justify a future price tag that is still above today's market? The narrative's secret sauce involves a blend of new product breakthroughs, ambitious margin forecasts, and a future earnings multiple that is not just for big tech. Want to know what makes analysts confident about this fair value call and how much growth is really baked in? Find out which bold numbers push this target well past current levels.

Result: Fair Value of $9.30 (UNDERVALUED)

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

However, ongoing regulatory changes or an unexpected drop in utility-scale solar demand could quickly challenge the company’s growth outlook and valuation case.

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

Another View: What Does Our DCF Model Say?

While analysts see potential in Array Technologies using future growth estimates, our DCF model also points to the stock trading below its calculated fair value. However, could a different set of assumptions tip the scales?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Array Technologies for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Array Technologies Narrative

If you see the numbers differently or want to dig into the data on your own terms, building your own valuation takes 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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