Investing.com -- Seaport Research Partners downgraded Array Technologies Inc (NASDAQ: ARRY ) to “Neutral” from “Buy,” citing slow progress in closing market share and margin gaps with its top competitor, Nextracker Inc (NASDAQ: NXT ), as well as worsening conditions in Brazil, its largest foreign market.

Despite improvements in deleveraging and a rebound in its U.S. win rate from Q3 2023 to Q3 2024, Array’s turnaround efforts have not delivered the expected momentum, the firm said.

Seaport highlighted that Nextracker remains dominant in key competitive metrics, with a growing backlog and higher margins, while Array’s backlog remained flat sequentially at $2 billion.

Challenges in Brazil, where Array saw over $50 million in canceled orders in Q4 2024, are compounding the company’s struggles.

A weakening Brazilian real, volatile interest rates, tax changes, and rising tariffs on steel and solar components have created a difficult operating environment. The company also took $165.9 million in non-cash impairment charges related to its 2022 acquisition of STI Norland.

Seaport sees limited near-term catalysts for Array’s stock and will wait for a clearer inflection in margins or backlog before reassessing its rating.