In a report released today, Dimple Gosai from Bank of America Securities reiterated a Buy rating on NEXTracker, Inc. Class A, with a price target of $102.00.
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Dimple Gosai has given his Buy rating due to a combination of factors that highlight NEXTracker, Inc.’s strategic transition and growth potential. The company is evolving from a tracker-focused business to a more comprehensive platform that includes structural, electrical, and digital components, which is expected to enhance its earnings stability. This shift is supported by existing commercialized products and new initiatives such as foundations, module frames, and a U.S.-built power conversion system platform.
Foundations and electrical balance of system (EBOS) are significant contributors to this growth, with foundations expected to drive a 31% revenue CAGR and EBOS a 66% revenue CAGR by FY30. These developments are anticipated to increase non-tracker revenues substantially, while tracker revenues continue to grow. Additionally, the valuation framework has been updated to reflect a more diversified revenue mix and improved visibility, leading to a raised price objective of $102. This comprehensive transformation underpins the Buy rating, as it positions NEXTracker for sustained multi-year growth.
In another report released today, Barclays also maintained a Buy rating on the stock with a $105.00 price target.