Array Technologies (ARRY) Stock Forecast & Price Target

Array Technologies Inc. continues to exhibit strong growth potential, with a significant year-over-year increase of 60% in its domestic order pipeline for 2024, contributing to an anticipated order book rise of approximately $300 million, reaching around $1.8 billion. The company's leading position in the utility-scale solar market is underscored by a substantial backlog of $2.0 billion, up 10% compared to the previous year, alongside expected improvements in margins due to increased demand for domestic solar content products. Additionally, Array’s EBITDA margins are projected to expand, reflecting its strategic capabilities to capture market share and adapt to competitive pressures, which supports a favorable long-term outlook.

Array Technologies, Inc. has experienced a concerning stagnation in its total backlog, which has remained flat over the past few years amidst declining gross bookings and revenues, raising doubts about its growth trajectory. The company faces significant risks such as lower-than-expected growth in utility-scale solar energy projects and the potential impacts of resource inflation and shortages, which could adversely affect both revenue and margins. Additionally, a mixed performance in the fourth quarter, coupled with conservative guidance for fiscal year 2025 and ongoing customer hesitations related to policy and tariffs, suggests a challenging financial outlook for Array Technologies moving forward.