UPDATE: Piper Sandler Downgrades Array Technologies (ARRY) to Neutral
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Piper Sandler analyst Kashy Harrison downgraded Array Technologies (NASDAQ: ARRY) from Overweight to Neutral with a price target of $27.00 (from $53.00).
The analyst comments "As a result of the challenging supply-chain environment, ARRY is pulling 2021 guidance. Specifically, higher input costs are weighing on margins and there could be revenue risk as ARRY attempts to pass on higher costs to customers. Thus, while ARRY's executed contracts and awarded orders were up 10% q/q, we don't have visibility on revenue timing or margin trajectory. Accordingly, we push our old revenue estimates by one year (old '21=new '22) until visibility improves. Beyond limited visibility, we suspect investors will likely begin revisiting the appropriate multiple for trackers and the bias is probably closer to modules. Accordingly, we are downgrading ARRY to Neutral from Overweight as we have no real visibility on revenues and margins over the next several quarters. We intend to reassess our rating in the future as supply-chains normalize and margin visibility improves as we remain excited about the massive LT utility-scale solar growth opportunity."
Shares of Array Technologies closed at $24.95 yesterday.
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