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Bank of America Identifies Clean Energy Tech Stock as a Promising Investment

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Bank of America Identifies Array Technologies as a Promising Growth Story

Bank of America has expressed confidence in Array Technologies, a solar tracking company, labeling it as a growth opportunity that investors should not overlook. The firm reiterated its buy rating on Array Technologies, setting a price target of $30 per share, which suggests a potential upside of over 24% from the previous day's closing price of $24.12. In 2023 alone, the stock has already experienced a significant climb of more than 30%.

Standout Performance in a Challenging Sector

Analyst Julien Dumoulin-Smith highlights Array Technologies as a standout stock in a sector that lacks confidence. He describes the company as a "margin story with a growth option" that is still underappreciated. In a market where established cleantech companies face uncertainties, Array Technologies shines as a promising investment opportunity.

An Attractive Buying Opportunity

Dumoulin-Smith points out that the current market conditions, characterized by tightening credit and rising interest rates, have created volatility. In this environment, Array Technologies presents an attractive buying opportunity. Investors are likely to prefer structural growth stories with minimal exposure to interest rate fluctuations.

Potential for Growth and Favorable Legislation

Array Technologies could benefit from the Inflation Reduction Act, potentially earning as much as 2.4 cents per watt of U.S. solar wattage sold. Additionally, Dumoulin-Smith forecasts a 30% earnings growth for Array Technologies in 2024, surpassing Wall Street estimates for the following year. In conclusion, Bank of America's endorsement of Array Technologies as a growth story underscores the company's potential in the solar tracking industry. The stock's standout performance, combined with favorable market conditions and potential legislative benefits, make Array Technologies an attractive investment opportunity. As the renewable energy sector continues to grow, Array Technologies is well-positioned to capitalize on the increasing demand for large-scale solar trackers.

Implications for New Businesses: A Hot Take

The endorsement of Array Technologies by Bank of America as a promising growth story provides valuable insights for new businesses, particularly those in the renewable energy sector.

Opportunities in the Renewable Energy Sector

Array Technologies' success underscores the growth opportunities in the renewable energy sector. New businesses can learn from Array Technologies' strategy of focusing on large-scale solar trackers, a niche market with significant growth potential.
Investment Attractiveness Amid Market Volatility
Despite market volatility caused by tightening credit and rising interest rates, Array Technologies presents an attractive investment opportunity. This suggests that businesses with a clear growth story and minimal exposure to interest rate fluctuations can still attract investors in a volatile market. In conclusion, the success of Array Technologies offers valuable lessons for new businesses. Opportunities exist in the renewable energy sector, and businesses that can present a clear growth story can attract investment even in volatile market conditions. As the renewable energy sector continues to grow, businesses that can identify and capitalize on niche markets, like Array Technologies has done with large-scale solar trackers, will be well-positioned for success.
Story First Published at: https://www.cnbc.com/2023/09/19/bank-of-america-calls-this-clean-energy-tech-stock-a-diamond-in-the-rough.html
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