Bank of America calls this clean energy tech stock a ‘diamond in the rough’
Bank of America thinks Array Technologies is a growth story investors shouldn’t miss. The firm reiterated a buy rating on the solar tracking company with a $30 per share price target and added Array to its “US 1” list on Tuesday. The forecast implies more than 24% upside from Monday’s $24.12 close. The stock has climbed more than 30% in 2023. Array Technologies focuses on providing large-scale solar trackers for the broader industry. Analyst Julien Dumoulin-Smith labeled Array stock as a standout “in a sector lacking confidence,” and said the company is a “margin story with a growth option with both still underappreciated.” “In a market where the legacy ‘blue chip’ names of cleantech have limited line of sight to 4Q, let alone 2024, ARRY screens as a diamond in the rough,” Dumoulin-Smith said. The analyst added that as tightening credit and rising interest rates create a volatile market, Array presents an attractive buying opportunity. “We suspect investor preference for structural growth stories with minimal interest rate exposure will persist,” he said. Dumoulin-Smith added that Array could also see as much as 2.4 cents per watt of U.S. solar wattage sold thanks to the Inflation Reduction Act, and he forecasts 2024 earnings growth of 30% more than Wall Street estimates next year. — CNBC’s Michael Bloom contributed to this report.
