UBS Boosts Array Technologies (ARRY) Outlook Amid Margin Strength

UBS raises price target for Array Technologies (ARRY) to $9.00 and reiterates a Buy rating due to the company's updated financial guidance, which points to stronger gross margins in the latter half of 2025 and early 2026. The firm also adjusts EBITDA projections for the next three years, expecting $200 million in 2025, $244 million in 2026, and $268 million in 2027. UBS maintains a bullish stance on Array Technologies, citing robust momentum in utility-scale solar development and the company's strategic ability to navigate tariff-related cost pressures.

UBS Group AG has raised its price target for Array Technologies Inc. (NASDAQ: ARRY) to $9.00, reiterating a Buy rating based on the company's updated financial guidance. The guidance points to stronger gross margins in the latter half of 2025 and early 2026, driving the upward revision. UBS also adjusted its EBITDA projections for the next three years, expecting $200 million in 2025, $244 million in 2026, and $268 million in 2027 [2]. The firm maintains a bullish stance on Array Technologies, citing robust momentum in utility-scale solar development and the company's strategic ability to navigate tariff-related cost pressures.

Array Technologies, a leading solar tracker manufacturer, recently published its Q2 2025 results, showcasing a significant shift in its trajectory. The company reported revenue of $362.2 million, exceeding market forecasts, and benefited from policy changes that led to a 26% stock surge. The acquisition of APA Solar has further bolstered its portfolio, aiming to enhance earnings and strategic positioning. While the company's gross margin remained strong at 28.2%, the EBIT margin showed a negative trajectory at -14.1%, indicating operational challenges [3].

UBS's positive outlook is supported by the company's strong performance in the renewable energy sector, driven by policy shifts and investor enthusiasm. Array Technologies' stock climbed by 8.6% on August 18, 2025, highlighting the positive sentiment towards the sustainable energy sector [3]. The company is expected to provide further insights into its financial performance during the Q3 earnings discussion, which investors will closely monitor to gauge its strategic direction and growth prospects.

References:
[1] https://www.theglobeandmail.com/investing/markets/stocks/UBS/pressreleases/34171520/rbc-capital-sticks-to-its-buy-rating-for-ubs-group-ag-ubs/
[2] https://ca.finance.yahoo.com/news/ubs-raises-outlook-array-technologies-042123281.html
[3] https://www.ainvest.com/news/array-technologies-q2-2025-results-gamechanger-shareholders-investors-2508/