Mizuho raises Nextracker stock price target to $66 on improved guidance

Published 30/07/2025, 17:26
Mizuho raises Nextracker stock price target to $66 on improved guidance

Investing.com - Mizuho (NYSE:MFG) raised its price target on Nextracker Inc (NASDAQ:NXT) to $66.00 from $65.00 on Wednesday, while maintaining a Neutral rating on the solar tracking equipment provider. The company, currently trading at $59.83, has demonstrated strong financial health with a market capitalization of $8.9 billion and impressive year-to-date returns of 77.7%, according to InvestingPro data.

The price target increase follows Nextracker’s better-than-expected quarterly results and raised revenue and profitability guidance for the year. With a robust gross profit margin of 34.1% and revenue growth of 18.4%, the company has recently expanded its business through acquisitions in robotics and artificial intelligence technologies.

These new acquisitions aim to help solar developers with maintenance tasks such as cleaning panels and installation variance analysis, positioning Nextracker to become a comprehensive utility solar equipment provider. Management plans to outline their strategy for these new business segments at their Analyst Day in November.

Mizuho noted that Nextracker is increasing research and development spending and operational expenses to support the recent acquisitions, which have been dilutive to margins in the near term. The $1 increase in the price target reflects expectations for higher margins.

Despite the improved outlook, Mizuho maintained its Neutral rating, citing limited long-term growth prospects in the U.S. following the Onshoring of Basic Bipartisan Businesses (OBBB) and potential headwinds from Treasury safe harbor guidance. Based on current trading multiples and growth prospects, InvestingPro analysis suggests the stock is trading near its Fair Value, with 13 additional exclusive insights available to subscribers.

In other recent news, Nextracker Inc. reported a robust performance for the first quarter of fiscal year 2026, significantly surpassing both earnings and revenue forecasts. The company achieved an earnings per share of $1.16, which was well above the expected $0.61, representing a 90.16% surprise. Revenue also exceeded expectations, reaching $864 million compared to the anticipated $632.94 million, a 36.51% increase. Additionally, TD Cowen raised its price target for Nextracker to $65 from $55, maintaining a Hold rating. This adjustment was attributed to Nextracker’s strong quarterly performance and its raised fiscal year 2026 guidance, supported by a record backlog. These developments highlight the company’s solid financial standing and potential for future growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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