UBS analyst Jon Windham downgraded Array Technologies to Neutral, citing capital constraints from preferred dividends that limit strategic flexibility and increase vulnerability to competitive pressure.
UBS analyst Jon Windham downgraded Array Technologies to Neutral and halved his price target to $5, citing preferred-dividend cash obligations that constrain M&A flexibility and leave the stock vulnerable to competitive share losses, while technicals show intense selling pressure.
Array Technologies shares fell on Sept. 18 after UBS analyst Jon Windham downgraded the stock to Neutral and cut his price target by 50%. Windham cited $162 million in cumulative cash obligations from preferred dividends, which he argues will restrict the company's ability to pursue M&A and leave it vulnerable to market share losses against more diversified competitors.
The downgrade stems from concerns that the company's transition to cash-pay preferred dividends will limit operational capital and hinder its ability to execute M&A or compete effectively against rivals.