Wells Fargo analyst Praneeth Satish maintained a Buy rating on NEXTracker, Inc. Class A (NXT – Research Report) yesterday and set a price target of $64.00.
Praneeth Satish has given his Buy rating due to a combination of factors, including NEXTracker, Inc.’s impressive fourth-quarter performance and conservative yet attainable guidance for the fiscal year 2025. The company’s revenue and EBITDA for the fourth quarter surpassed consensus estimates, signaling strong operational execution. Furthermore, the guidance for FY2025, while slightly below the analyst’s earlier projections, remains in line with market consensus and incorporates a level of prudence which suggests potential for overachievement. This cautious outlook accounts for possible project delays and pricing pressures in the latter half of the year, yet still points to a robust financial standing.
The substantial backlog, which the management indicates typically converts to revenue within 2-5 quarters, significantly de-risks the guidance for FY2025 and suggests the potential to surpass $3 billion in revenue. While Praneeth has moderated the firm’s EBITDA estimates and price target to reflect a slightly reduced forecast for tax credits and anticipated margin pressures, the underlying strength of NEXTracker’s business and its conservative guidance strategy underpin the Buy rating. The price target is supported by a blend of discounted cash flow analysis and target EV/EBITDA multiples, providing a comprehensive financial rationale for the positive outlook on the company’s stock.
NXT’s price has also changed moderately for the past six months – from $38.470 to $43.010, which is a 11.80% increase.
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NEXTracker, Inc. Class A (NXT) Company Description:
NEXTracker Inc provides integrated solar tracker and software solutions used in utility-scale and ground-mounted distributed solar generation projects worldwide. Nextracker’s products enable solar panels in utility-scale power plants to follow the sun’s movement across the sky and optimize plant performance. It generates revenue from selling solar trackers, such as NX Horizon and NX Gemini, and from licensing TrueCapture software products.
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