FTSE 100: Index falls as earnings results weigh; pound below $1.33, Bodycote soars
On Wednesday, Mizuho (NYSE:MFG) Securities demonstrated confidence in Nextracker Inc (NASDAQ:NXT) by increasing the firm’s price target on the stock to $60, up from the previous target of $51. This adjustment comes alongside the reaffirmation of an Outperform rating for the company’s shares. The stock, currently trading at $58.99, has shown remarkable momentum with a 61.48% gain year-to-date, according to InvestingPro data.
The revised price target represents a 17% increase from the former figure and is attributed to Nextracker’s robust operational performance and strategic initiatives. According to Mizuho, the company’s management has been effectively diversifying its investments beyond solar trackers, aiming for a third of its sales to come from non-solar operations within the next five years. This strategy appears to be working, as InvestingPro data shows the company maintaining excellent financial health with strong profitability metrics and a healthy balance sheet.
Nextracker’s solar business has been performing strongly, as evidenced by another quarter of exceeding expectations and upward revisions. This success has been achieved despite the potential headwinds posed by tariffs, a diverse international market mix, and the costs associated with ramping up new business ventures. InvestingPro data reveals that 11 analysts have revised their earnings upward for the upcoming period, while the company maintains a comfortable current ratio of 2.09, indicating strong operational efficiency.
Mizuho’s positive outlook is further bolstered by the company’s limited exposure to risks associated with the potential repeal of the 45X manufacturing tax credit. The firm also notes Nextracker’s strong demand growth, enhanced pricing power due to its domestic content, and a healthy cash balance as key factors supporting the price target increase.
The analyst’s statement highlighted the company’s effective management execution and strategic positioning, which are expected to drive continued growth and financial performance. As of now, Nextracker’s market trajectory and financial health appear to be on solid footing according to Mizuho’s analysis.
In other recent news, Nextracker Inc. reported impressive financial results for its fourth quarter of 2025, significantly surpassing market expectations. The company announced an earnings per share (EPS) of $1.29, well above the forecasted $0.73, and reported revenue of $924 million, exceeding the anticipated $766.4 million. Nextracker’s full-year revenue reached $3 billion, marking an 18% increase from the previous fiscal year. In addition to its strong financial performance, Nextracker provided guidance for fiscal 2026, projecting revenue between $3.2 billion and $3.4 billion and adjusted EBITDA ranging from $700 million to $775 million.
Nextracker also announced the acquisition of Bentek, a company specializing in electrical Balance of Systems solutions, for $78 million. This acquisition is part of Nextracker’s strategy to diversify its revenue streams, with management expecting non-tracker business ventures to account for over one-third of the company’s revenue within five years. Analyst firms have responded positively to these developments, with Jefferies, Barclays (LON:BARC), and JPMorgan all raising their price targets for Nextracker to $63, $64, and $65, respectively, and maintaining positive ratings. These analysts cite Nextracker’s robust performance, strategic acquisitions, and strong market position as reasons for their optimism.
The company’s current backlog stands at over $4.5 billion, indicating strong demand and providing a solid foundation for future growth. Nextracker’s strategic initiatives, including the expansion of product offerings and increased operational expenditure, reflect its commitment to sustaining growth and enhancing shareholder value.
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