Bank of America Securities downgraded Array Technologies to 'Underperform' from 'Neutral' and reduced its price target to $7 from $8. The downgrade was attributed to increasing global tariff concerns that are expected to negatively impact the company's operations.
Analysts cited specific tariff developments, including India tariffs doubling from 25% to 50% and a new 25% duty on Mexico-gearsets. These trade policy changes are anticipated to create margin pressure and operational challenges for Array Technologies, particularly in its international markets.
The firm expressed pessimism regarding Array's ability to navigate these heightened tariff barriers, which could disrupt supply chains, increase costs, and potentially delay projects. This assessment reflects a more cautious outlook on the company's near-term financial performance.
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