Barclays downgrades Array Technologies on weak growth outlook, margin strain

Investing.com -- Barclays downgraded Array Technologies to Equal Weight from Overweight given slowing bookings and pressure on margins, while maintaining its bullish stance on rival Nextracker.

The brokerage set a $9 price target for Array, saying it expects little underlying growth in 2026 excluding its APA acquisition after several quarters of soft orders.

Barclays also warned of margin headwinds from tariffs in the third quarter, adding that even as the company passes through costs next year, part of the benefit could be offset by sharing incentives under the Inflation Reduction Act.

Whereas Barclays said Nextracker’s recent acquisitions have expanded its share of the U.S. solar equipment “wallet” from roughly $0.10 per watt to about $0.18, giving clearer earnings visibility beyond sector-wide solar growth.

It reiterated its Overweight rating on Nextracker and lifted the price target to $92.

Solar manufacturers have rallied this year on greater clarity around U.S. clean energy policy, but Barclays said investors will increasingly focus on execution rather than legislation.

It expects Nextracker’s broader offering spanning trackers, steel frames, piles and electrical components to help it win more customer contracts over time, while Array remains behind in that transition.

Solar suppliers face shifting U.S. trade rules and rising input costs, which have squeezed profits even as demand for utility-scale projects gradually recovers.

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