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Northland downgrades Nextracker on anticipated increase in regulatory headwinds

As previously reported, Northland analyst Gus Richard downgraded Nextracker (NXT) to Market Perform from Outperform with a price target of $65, up from $61. Nextracker beat estimates and raised guidance, but its outlook assumes the current U.S. policy environment remains in effect, the analyst noted. However, the firm believes the U.S. administration is “committed to limiting the use of solar” and anticipates an increase in regulatory headwinds in the U.S., which accounts for 66% of Nextracker’s revenue. Given this view, the firm has lowered its FY27 assumptions and downgraded shares.

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