RBC Capital raises Nextracker stock price target to $96 on expanded solutions

Investing.com - RBC Capital has raised its price target on Nextracker Inc (NASDAQ:NXT) to $96.00 from $93.00 while maintaining an Outperform rating on the solar tracking company’s stock. The new target aligns closely with Nextracker’s current trading price of $96.51, though the stock has experienced volatility with a 9.42% decline over the past week despite a remarkable 164.18% gain year-to-date.

The firm cited Nextracker ’s evolution into a "full suite solutions provider" as the primary reason for the higher valuation, noting the company is capturing a larger share of wallet beyond hardware sales. This strategic shift appears to be paying dividends, as InvestingPro data shows Nextracker maintains strong profitability with a basic EPS of $3.95 and robust revenue growth of 20.37% over the last twelve months.

RBC Capital highlighted that Nextracker’s innovations in software and robotics are expanding its role as a long-term partner in solar power plant management, creating new recurring revenue opportunities.

The investment bank believes these expanded capabilities are fostering "more sticky relationships" with customers and positioning Nextracker as a platform solutions provider rather than just a hardware manufacturer.

This strategic evolution should help drive higher attachment rates for Nextracker’s entire product suite over time, according to RBC Capital’s analysis of the company’s business model.

In other recent news, Nextracker Inc has seen a series of positive developments following its strong quarterly performance. The company reported impressive revenue growth, driven by increased demand in the United States and expanding operations in Europe. Analysts have responded favorably, with TD Cowen raising its price target to $88, citing the company’s backlog growth. RBC Capital also increased its price target to $93, highlighting better-than-expected revenue and margins. Similarly, BMO Capital raised its target to $93, noting robust bookings of approximately $1.2 billion and a total backlog exceeding $5 billion. Wolfe Research provided the most optimistic outlook, raising its price target to $116, emphasizing Nextracker’s market leadership and innovative technology. Meanwhile, NextGen Digital Platforms Inc. has completed the first tranche of its private placement, raising $826,000 through the issuance of 2,065,000 units. Each unit includes one common share and one-half of a transferrable common share purchase warrant, with provisions for accelerated expiry based on share price performance.

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