Array Technologies weakness is buying opportunity, analyst says

Sep. 16, 2022 1:48 PM ETArray Technologies, Inc. (ARRY)By: Joshua Fineman, SA News Editor7 Comments

Sunset over Solar energy Farm plant

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Array Technologies (NASDAQ:ARRY) 9.5% drop Thursday on a short report is a buying opportunity, according to Northland. Array shares ticked down 0.5% in trading on Friday.

"Short reports are often poorly-researched hit pieces, but we have to admit the recent short report on ARRY is better-than-average, even if wrong, in our view," Northland analyst Donovan Schafer wrote on Friday. "This is a classic case of "knowing enough to do some damage, but not enough to be right."

Schafer recommends buying the dip after the Jehoshaphat Research short report on the solar equipment manufacturer on Thursday that alleged the company may be overstating gross margins and inflating revenue.

Schafer, who has an outperform and $26 price target on Array (ARRY) added that "this is a case where someone seems to know a lot, and gets some things right, but the net result is a false sense of confidence that leads to big mistakes."

Array (ARRY) didn't immediately respond to Seeking Alpha email request for comment on the short report.

Array (ARRY) short interest is 10.6%.

Recall (ARRY) jumped almost 30% on Aug. 10 after the company reported an easy beat on both lines in its second quarter earnings results.

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