Array Technologies rated Overweight in new coverage at Cantor … – Seeking Alpha

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Array Technologies (NASDAQ:ARRY) on Friday was rated Overweight in new coverage by analysts at Cantor Fitzgerald. They said the maker of solar energy products is poised to benefit from a “multi-decade growth cycle for utility-scale solar installations.”
“We believe Array is a logical long-term partner for engineering, procurement and construction firms and utility-scale solar operators given the company’s proven track record, robust supply chain and differentiated product offering,” Derek Soderberg, analyst at Cantor, said in a Dec. 23 report.
Solar power for public utilities is the least expensive source of newly built energy capacity, according to Bloomberg New Energy Finance data cited by Cantor. That cost-effectiveness provides a fundamental source of strength aside from environmental, social and governance (ESG) mandates that have helped to drive investment in clean energy, the firm said.
A key risk is a potential federal limitation on imports of solar panels from Southeast Asia as the U.S. Department of Commerce investigates antidumping and tariff-related claims. The agency has a May deadline to make a determination on claims.
Cantor set a price target of $26 a share on Array (ARRY) based on an enterprise value-to-EBITDA multiple of 18 times an estimated $258 million in adjusted EBITDA for 2023.
“Longer term, should Array effectively penetrate international markets (margin accretive) and outpace gross margin expectations, we see a scenario where Aray sees multiple expansion,” according to Cantor.

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