NEXTracker, Inc. Class A: Balancing Record Growth with International Expansion and Legislative Risks

In a report released today, Jeff Osborne from TD Cowen maintained a Hold rating on NEXTracker, Inc. Class A (NXT – Research Report), with a price target of $55.00.

Jeff Osborne’s rating is based on a combination of factors that highlight both the strengths and potential challenges for NEXTracker, Inc. Class A. On the positive side, the company has delivered a record quarter with impressive revenue, EBITDA, and cash flow figures, surpassing market expectations. The guidance for FY26 EBITDA aligns with consensus, providing high visibility due to largely contracted agreements. Additionally, the company’s strong domestic supply chain offers protection against tariff impacts, and the recent record bookings have contributed to a growing backlog, supporting future growth prospects.
However, Osborne also notes some concerns that justify the Hold rating. The expansion into lower-margin international regions could potentially affect overall profitability, despite the increase in volume. Furthermore, legislative challenges related to utility solar in the U.S. could pose risks in the latter half of FY26 and beyond. These mixed factors, including both strong financial performance and potential future hurdles, have led to the decision to maintain a Hold rating for NEXTracker, Inc. Class A.