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Array Technologies (NASDAQ:ARRY) +5.3% in Monday's trading after Piper Sandler upgraded shares to Overweight from Neutral with a $28 price target, raised from $20, foreseeing an improved forward outlook for the renewable energy firm.
Piper's Kashy Harrison believes the company's $1.9B order book along with historical book-to-bill ratios lay the foundation for a strong revenue and EBITDA outlook entering CY 2023.
The analyst also sees Array Tech (ARRY) as a beneficiary of domestic content requirements and manufacturing credits in the Inflation Reduction Act.
Execution is "starting to trend in the right direction," and execution on the margin trajectory should lead to compression in leverage multiples, Harrison wrote, adding she also likes the new CEO's focus on transitioning toward free cash flow generation.
Northland Securities wrote last Friday that Array Technologies (ARRY) is a buying opportunity following a recent short report.