On Friday, BMO Capital initiated coverage on shares of Array Technologies (NASDAQ:ARRY), a global supplier of solar tracker equipment and technology, with a Market Perform rating and a price target of $16.00. The firm's stance is based on a positive outlook for the global demand for solar trackers, anticipating that the market outside of China will more than double by the end of the decade.
Array Technologies is currently trading at a significant discount compared to its competitors, with a 30% lower valuation than its comparable group and 40% less than its primary peer, NXT. Despite this discount, BMO Capital has decided to start with a Market Perform rating.
The decision for the Market Perform rating is influenced by recent company performance and market trends. Recent results and guidance from Array Technologies indicate a potential reduction in market share. BMO Capital's revenue projections for the company are approximately 7% below the consensus estimates for the years 2024 through 2026.
The firm's analysis suggests caution due to the challenges faced by Array Technologies in maintaining its market share. While the broader market for solar trackers is expected to grow robustly, Array Technologies will need to navigate the competitive landscape effectively to capitalize on the market potential.
BMO Capital's coverage initiation and price target setting provide investors with a current perspective on Array Technologies' position in the solar tracker industry and its financial outlook for the near future. The Market Perform rating reflects a neutral stance on the stock's potential performance relative to the market expectations.
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