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Investing.com - Jefferies has raised its price target on Nextracker Inc (NASDAQ:NXT) to $77.00 from $63.00 while maintaining a Buy rating on the stock. The company’s stock, currently trading at $66.45, has demonstrated remarkable momentum with an 81.91% gain year-to-date, according to InvestingPro data.
The investment firm cited Nextracker’s robust growth potential, particularly from its international business and new segments, as key factors behind the increased valuation. This optimism is supported by the company’s excellent financial health score and strong revenue growth of 18.38% over the last twelve months, as reported by InvestingPro.
Jefferies expects Nextracker to announce new deals closer to the company’s analyst day scheduled for fall 2024, highlighting potential catalysts on the horizon.
The firm also projects significant growth in Nextracker’s non-tracker business, estimating an expansion from low single-digit percentage to over 30% within five years.
Despite the substantial price target increase, Jefferies maintained its premium valuation metrics for the stock, noting there is "clear room to run" for Nextracker shares.
In other recent news, Nextracker Inc has announced its Q4 2025 earnings, surpassing market expectations with an earnings per share (EPS) of $1.29 against a forecast of $0.73, and revenue of $924 million, exceeding the anticipated $766.4 million. The company also reported a 26% year-over-year increase in Q4 revenue, contributing to a full-year revenue of $3 billion, marking an 18% rise from fiscal 2024. Nextracker projects fiscal 2026 revenue between $3.2 billion and $3.4 billion, with adjusted EBITDA ranging from $700 million to $775 million. Barclays (LON:BARC), Jefferies, and JPMorgan have all raised their price targets for Nextracker, highlighting confidence in the company’s strategic initiatives and growth trajectory. Barclays set a new target of $64, Jefferies at $63, and JPMorgan at $65, all maintaining positive ratings. Additionally, Nextracker has acquired Bentek for $78 million, expanding its offerings to include electrical Balance of Systems (eBOS) solutions, which is anticipated to contribute significantly to its revenue over the next five years. Mizuho (NYSE:MFG) also increased its price target to $60, citing Nextracker’s robust operational performance and strategic diversification beyond solar trackers. These developments underscore Nextracker’s strong market position and strategic direction, as noted by various analysts.
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