Does Baird’s Downgrade of Array (ARRY) Hint at Deeper Questions Around Its Margin Resilience?

• In late January 2026, Baird downgraded Array Technologies from Outperform to Neutral, citing valuation concerns and the risk that intensifying competition could pressure margins on future solar-tracker bookings.
• The move highlights a growing tension between analyst caution on profitability and investor optimism that Array Technologies can continue winning sizable project orders.
• We’ll now examine how this downgrade, and the concern over potential margin pressure, shapes Array Technologies’ broader investment narrative.

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What Is Array Technologies' Investment Narrative?

To own Array Technologies, you really have to believe that its solar-tracker platform can convert today’s project pipeline into durable, profitable growth, even if the broader solar cycle stays choppy. Recent quarters showed rising revenue and a swing to positive earnings, helped by improved execution and a refocused leadership team. The Baird downgrade, coming after a sharp share price run, squarely challenges the near-term bull case by questioning how much margin Array can keep if competitors bid aggressively for the same projects. In the short term, that raises the bar for upcoming earnings: order wins alone may not reassure the market if they arrive with thinner profitability. Still, the stock’s positive reaction to the downgrade suggests many shareholders are, for now, treating margin pressure as a risk to watch rather than a thesis-breaker.

However, investors should be aware that stronger bookings might not translate into stronger margins.
Array Technologies' shares are on the way up, but could they be overextended? Uncover how much higher they are than fair value.

Exploring Other Perspectives

Three fair value estimates from the Simply Wall St Community cluster tightly around US$10.86 to US$11.00, yet your peers are weighing that against fresh concerns about whether new project wins could come at lower margins, a tension that may shape how Array’s recent momentum is judged over the next few results.

Explore 3 other fair value estimates on Array Technologies - why the stock might be worth just $10.86!

Build Your Own Array Technologies Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Array Technologies research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Array Technologies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Array Technologies' overall financial health at a glance.

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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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