TD Cowen analyst Jeff Osborne reiterated a Hold rating on NEXTracker, Inc. Class A yesterday and set a price target of $88.00.
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Jeff Osborne has given his Hold rating due to a combination of factors influencing NEXTracker, Inc. Class A. The company is undergoing a significant transformation by expanding its product offerings beyond its traditional tracker-centric solutions to include a broader range of connected solutions. This strategic shift is expected to nearly triple the total addressable market by incorporating non-tracker adjacent markets. However, this expansion has led to concerns about a blended EBITDA contraction, which has resulted in mixed reactions from investors.
While NEXTracker’s leadership team, with experience from Sunpower, is aiming to create a comprehensive solar solutions platform, the anticipated revenue growth from new products and services is projected to reach about 32% by FY30. Despite the promising growth outlook, with a CAGR of approximately 40% for non-tracker revenue, there are uncertainties regarding margin degradation and the adoption of new products. These include the need for UL certification for eBOS, inverter pilots expected in mid-2026, and the development of O&M and software features. As a result, Osborne maintains a Hold rating, reflecting caution over whether the stock’s valuation will improve amidst these challenges.
Osborne covers the Technology sector, focusing on stocks such as SolarEdge Technologies, First Solar, and NEXTracker, Inc. Class A. According to TipRanks, Osborne has an average return of 4.1% and a 45.86% success rate on recommended stocks.