BofA analysts reiterated a Buy rating on Array Technologies Inc. (ARRY) in a note to clients Tuesday, with the bank also lowering its price target for the stock to $21 from $23 per share.
Analysts, who headed the note, said they still like the story but expect volatility ahead of the company's 2024 guide.
"A series of guidance cuts driven by customer delays have pressured the shares of Array Technologies (ARRY) year-to-date (YTD), and we perceive investors as acutely focused on this angle heading into 2024," analysts explained.
"We stress we continue to hear from industry participants that elevated rates and inflationary pressures are driving smaller developers who lack the advantages of scale to rethink project economics," they added.
However, analysts said ARRY management stresses it has seen no cancellations and still sees ~$300 million in IRA-fueled high-likelihood orders within the broader accelerating pipeline.
Nevertheless, BofA still expects volatility in the near term leading up to the company's fourth-quarter call, where ARRY typically issues full-year guidance. "While YTD headwinds have proven challenging, we reiterate our Buy rating on shares of ARRY, which we still view as a market leader trading at an attractive valuation," said the bank.