Bank of America Highlights Array Technologies as a Promising Investment Opportunity
Introduction
Bank of America has identified Array Technologies as a company that investors should pay attention to. In a recent report, the firm reiterated its buy rating on the solar tracking company, with a price target of $30 per share. Array Technologies has also been added to Bank of America’s prestigious “US 1” list. This article explores why Array Technologies is considered a standout player in the solar industry and why it presents an attractive buying opportunity.
Growth Potential and Price Target
Bank of America’s forecast for Array Technologies suggests a potential upside of more than 24% from its previous closing price of $24.12. This optimistic projection reflects the company’s strong performance, with the stock having already climbed over 30% in 2023. Array Technologies specializes in providing large-scale solar trackers for the industry, positioning it as a crucial player in the renewable energy market.
Positive Assessment from Analyst Julien Dumoulin-Smith
Analyst Julien Dumoulin-Smith lauds Array Technologies as a standout company in a sector that lacks confidence. He describes the company as a “margin story with a growth option” that is not fully appreciated by the market. This assessment highlights Array Technologies’ potential for both profitability and expansion. Dumoulin-Smith emphasizes the company’s resilience in a market where established cleantech companies struggle to forecast their performance beyond the fourth quarter of the year.
An Attractive Buying Opportunity
As credit tightens and interest rates rise, the market becomes more volatile. In this environment, Dumoulin-Smith asserts that Array Technologies presents an appealing investment opportunity. The company’s focus on structural growth, combined with minimal exposure to interest rate fluctuations, aligns with the preferences of many investors. This makes Array Technologies an attractive choice for those seeking stability and lucrative returns.
Potential for Increased Market Share
Array Technologies stands to benefit from the Inflation Reduction Act, which could potentially add up to 2.4 cents per watt of U.S. solar wattage sold to its revenue. Furthermore, Dumoulin-Smith predicts that Array Technologies will achieve 2024 earnings growth that surpasses Wall Street estimates by a significant margin of 30%. These optimistic projections position Array Technologies as an industry leader with strong potential for future growth.
Overall, Bank of America’s endorsement of Array Technologies as a growth story underscores the company’s promising future. Investors who are looking for a stable and lucrative investment in the renewable energy sector should take note of Array Technologies.
