Array Technologies has won a large contract with Primoris Services Corporation. Array, which manufactures ground-mounted systems and provides tracking solutions for solar energy projects, will provide Primoris with up to 4 Gigawatts (GWs) of its solar trackers.
The contract provides Array (ARRY) with a commitment for Primoris’ purchase of 2.5GW of its DuraTrack HZ v3 single-axis solar trackers. These trackers will be used in more than 10 projects across North America, expanding the use of solar power and sustainable energy. This contract also includes an option for the purchase of an additional 1.5GW solar trackers for other projects. Array expects product shipments to begin in June.
Array Technologies’ Chief Commercial Officer, Jeff Krantz, said, “Primoris Renewable Energy is one of the top solar contractors in the U.S., and we are pleased to expand our relationship with them. This agreement builds on the 2GWs that Primoris Renewable Energy has already purchased from Array and underscores the edge our system provides in installation efficiency over our competitors.”
Krantz added, “Through innovations, including single-bolt module clamps and the toolless assembly of certain components, we are helping our EPC customers reduce their labor costs and complete record-breaking projects on time and under budget.” (See Array Technologies stock analysis on TipRanks)
Recently, Oppenheimer analyst Colin Rusch reiterated a Hold rating on the stock but did not assign any price target.
Reacting to the company’s 4Q results, Rusch said, “While management expects commodity and freight cost inflation to normalize during FY21, the current supply chain environment suggests these headwinds could persist.” In case this situation continues, Rusch thinks Array will be able to pass on the costs to customers. The analyst views the company as one of the industry leaders in developing artificial intelligence for tracking cloud cover.
Consensus among analysts is that Array Technologies is a Strong Buy, based on 7 Buys and 2 Holds. The average analyst price target of $44.25 implies upside potential of 49.9%. Shares have dropped about 31.5% year-to-date.
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