Oklo stock tumbles as Financial Times scrutinizes valuation
Investing.com - Mizuho has raised its price target on Nextracker Inc (NASDAQ:NXT) to $76.00 from $66.00, maintaining a Neutral rating on the solar tracking system manufacturer. The stock, currently trading at $87.06, has shown remarkable momentum with a 138% gain year-to-date, according to InvestingPro data.
The 15% price target increase reflects Mizuho’s incorporation of Nextracker’s non-tracker acquisitions, including Bentek and Origami, into its valuation model. The firm estimates these new product lines will represent approximately 10% of Nextracker’s revenue by fiscal year 2028. With a current market capitalization of $12.88 billion and strong financial health metrics, InvestingPro analysis reveals the company holds more cash than debt on its balance sheet.
Mizuho projects gross margins of 27.5% for steel frames and 25% for eBOS/foundations and other products. The firm expects cost reduction measures will help Nextracker maintain EBITDA margins in the mid-to-high teens over the long term. The company’s current gross margin stands at 33.93%, demonstrating strong operational efficiency.
Nextracker management is expected to provide additional details about these new business lines during its analyst day scheduled for November 12. For the upcoming earnings report on October 23, Mizuho anticipates management will raise its fiscal year 2026 guidance due to the impact of the recent acquisitions.
Despite the higher price target, Mizuho maintained its Neutral rating, citing concerns about tepid U.S. utility solar growth, with a projected compound annual growth rate of just 0.5% from 2025 to 2032, and limited capacity for U.S. market share expansion. Analyst targets currently range from $38 to $110, reflecting mixed market sentiment. For deeper insights into Nextracker’s valuation and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, T1 Energy Inc. and Nextracker have entered a strategic framework agreement valued at over $75 million. This multi-year deal involves Nextracker supplying its patented steel module frame technology for T1 Energy’s new 5-GW solar manufacturing facility in Dallas. The agreement aims to transition from imported aluminum frames to domestically produced steel frames using U.S.-manufactured specialty steel. Additionally, UBS has raised its price target for Nextracker to $110 from $75, maintaining a Buy rating due to the company’s strong market position and potential benefits from advanced manufacturing tax credits. Deutsche Bank has also initiated coverage on Nextracker with a Buy rating, citing the company’s leading market position in the solar tracker space and its technology-driven business model. In another development, NextGen Digital Platforms announced a $2 million private placement to issue up to 5 million units, each priced at $0.40. This private placement includes one common share and one-half of a transferrable share purchase warrant, with each whole warrant allowing the purchase of an additional share at $0.60 for 24 months from closing. These recent developments highlight significant movements in the solar technology and digital platforms sectors.
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