Gold prices steady ahead of Fed decision; weekly weakness noted
On Thursday, Barclays (LON:BARC) analyst Christine Cho increased the price target for Nextracker Inc (NASDAQ:NXT) to $64.00, up from the previous $58.00, while keeping an Overweight rating on the stock. The adjustment follows Nextracker’s fiscal year 2026 guidance release, which surpassed market expectations, indicating a robust performance outlook for the company. The stock, currently trading at $55.04, has shown remarkable momentum with a 23.41% gain in the past week alone. According to InvestingPro data, the company maintains an excellent financial health score of 3.96 out of 5, supported by strong profitability metrics.
Nextracker revealed its FY26 guide on Wednesday, projecting a revenue range of $3.2 billion to $3.4 billion. This forecast exceeds both Barclays’ and consensus estimates, which were set at $3.2 billion. The higher guidance is attributed to strong ongoing bookings and the company’s expectation that revenue will be more front-loaded in the first half of the year, mirroring the pattern of Array Technologies (NASDAQ:ARRY). Nextracker’s structural gross margins for the year are anticipated to be in the low 30% range, in line with its current trailing twelve-month gross margin of 34.09%. With a PEG ratio of just 0.13, InvestingPro analysis suggests the stock is trading at an attractive valuation relative to its growth prospects.
Additionally, the company estimates its adjusted EBITDA for FY26 to be between $700 million and $775 million, topping Barclays’ initial estimate of $671 million but aligning with the broader market’s expectation of $746 million. Earnings per share (EPS) are also forecasted to be stronger than anticipated, ranging from $3.65 to $4.03, compared to Barclays’ and the Street’s estimates of $3.45 and $3.70, respectively.
Prior to the announcement, Barclays had considered the possibility of a higher top-line figure, barring any significant delays due to tariff uncertainties. However, there were concerns regarding the potential impact on margins. Despite a year-over-year decrease, the projected low 30% margin range was better than Barclays’ expectation of high 20% margins.
The current backlog for Nextracker stands at over $4.5 billion, having increased quarter over quarter despite surpassing fourth-quarter numbers. This implies bookings of approximately $1 billion. Barclays analysts view the FY25 revenue as essentially secured by the existing backlog, with minimal reliance on new book-and-bill activities. With a market capitalization of $7.91 billion and last twelve months EBITDA of $652.52 million, the company shows strong operational execution. For deeper insights into Nextracker’s financial health and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with detailed analysis and actionable intelligence.
In other recent news, Nextracker Inc. reported impressive Q4 2025 earnings, surpassing market expectations with an earnings per share (EPS) of $1.29, significantly higher than the forecasted $0.73. The company’s revenue also exceeded projections, reaching $924 million against the anticipated $766.4 million. Nextracker’s full-year revenue for fiscal 2025 was $3 billion, marking an 18% increase from the previous year, while the adjusted diluted EPS rose by 38% to $4.22. The company projects fiscal 2026 revenue between $3.2 billion and $3.4 billion, with adjusted EBITDA ranging from $700 million to $775 million.
Additionally, Nextracker continues its strategic expansion through acquisitions, recently acquiring BenTech Corporation to enhance its offerings in Electrical Balance of Systems (EBOS). This acquisition aligns with the company’s goal to diversify its revenue streams, aiming for non-tracker revenue to constitute one-third of total revenue by 2030. In a related development, JPMorgan maintained its Overweight rating on Nextracker and raised the stock’s price target to $65, citing the company’s strong performance and strategic acquisitions. The investment firm highlighted Nextracker’s consistent execution and robust free cash flow as key strengths in a challenging market environment. These developments reflect Nextracker’s strategic growth initiatives and solidify its market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.