UBS Analyst Downgrades Array Technologies Due to Financial Constraints
On September 18, UBS analyst Jon Windham downgraded solar tracking manufacturer Array Technologies (ARRY) from a previous rating to 'Neutral.' The downgrade was accompanied by a halved price target of $5. Windham cited concerns over the company's shift to cash-pay preferred dividends, which he estimates will require approximately $162 million in cumulative payments through the end of this decade. This financial obligation could limit Array Technologies' ability to expand its product offerings and pursue strategic acquisitions at a time when competitors are consolidating their market positions. Windham noted that while ARRY can cover preferred dividends with free cash flow, it may hinder deleveraging efforts and growth opportunities. He also highlighted technical indicators showing the stock is below major moving averages with an RSI in the early 30s, suggesting continued downward pressure on its price. Despite this bearish outlook from Windham, other Wall Street analysts maintain a 'Moderate Buy' consensus rating for Array Technologies.
Tickers: $ARRY
Topics: Array Technologies Downgrade Financial Strategy Preferred Dividends UBS Analyst