Summary

  • Morgan Stanley upgraded its view on the clean tech sector, raising its recommendation ratings on Array Technologies and Hannon Armstrong in the process.
  • Array Technologies saw a 21% year-on-year increase in its revenue for Q2 2023 to US$507.7 million.
  • Hannon Armstrong received a rating upgrade from Morgan Stanley to ‘over-weight’ based on the broker’s positive view of the sustainable sector.

Broker Morgan Stanley upgraded its view on the clean tech industry, stating the stock selloff caused by concerns of higher interest rate as the main reason to do so. The broker upgraded some of the stocks in the industry, centered around this positive outlook.

Morgan Stanley stated that even though problems such as delays in permits, supply chain issues, and industry-wide risks exist, people still want renewable energy. The broker believes that the current prices make it a good time for investors to get in.

Morgan Stanley upgraded ratings on Array Technologies and Hannon Armstrong, based on its positive view of the sustainable tech sector. The following section contains a closer examination of these companies and the broker’s ratings on them:

Array Technologies Inc. gains 4.2% after MS upgrade

Array Technologies Inc. (NASDAQ: ARRY) manufactures solar trackers, and it operates in the US, Australia and other parts of the world, with the former being its majority market.

Broker Morgan Stanley upgraded ARRY to ‘equal weight’ from ‘underweight’, based on favorable economic and demand backup for the company. After the upgrade, Array’s share price went up 4.2% on October 17, 2023.

The company’s revenue for Q2 2023 was US$507.7 million, marking a 21% increase year-on-year. Meanwhile, its net income to common shareholders stood at US$52 million in the quarter, as against a net loss to common shareholders of US$17.2 million in Q2 2022.

ARRY has a mean recommendation rating of 2 on five, as per EODHD/Others data. Meanwhile, the consensus mean price target on ARRY is US$30.93, an upside potential of almost 67.5% over Wednesday’s closing price. 

ARRY Price Chart; Source: EODHD/Others

ARRY closed 3.5% lower on Wednesday at US$18.47. Meanwhile, Wednesday’s closing price was 20.2% higher over a 1-year period.

MS upgrades Hannon Armstrong to ‘over-weight’

REIT firm Hannon Armstrong (NYSE: HASI) focuses on two major types of investments: energy-efficient projects and renewable energy projects. Hannon received an upgrade from Morgan Stanley to an ‘over-weight’ position from its previous ‘equal weight’ rating.

After the upgrade, HASI price went up 5.4% on October 17, 2023. The stock closed at US$18.11 on Wednesday, October 18, 2023, 0.33% higher on an intraday basis. HASI hit its 52-week low of US$13.22 earlier this month on October 6, 2023.

HASI Price Chart; Source: EODHD/Others

As per EODHD/Others data, HASI’s mean recommendation rating is 1.9 on five. Meanwhile, the consensus mean price target on HASI is US$34.56, a possible increase of over 90% over Wednesday’s closing price.

Apart from HASI, Morgan Stanley also increased its price target on First Solar (NASDAQ: FSLR), a global supplier and manufacturer of solar photovoltaic panels. FSLR received a price target upgrade from US$214 to US$226.