Solar Surge: Analysts Beam Over NEXTracker’s Record Results and Bold Moves

NEXTracker has drawn Wall Street's attention following its phenomenal Q4 and fiscal year 2025, with ten top analysts revising their price targets and ratings in response to the latest results and strategic initiatives of the company.

Over the past three months, sentiment among analysts has been resolutely positive: 4 of 10 recent ratings are bullish, 5 are mildly bullish, and only 1 is neutral. None of the calls are bearish. In the past 30 days alone, 3 analysts have made bullish ratings, 2 are mildly bullish, and 1 is neutral.

 

Price targets have resolutely shifted upward. The average 12-month target now stands at $60.60, up 9% from the previous $55.56. High-end estimates reach $70, with the lowest at $48. Several major institutions have raised their targets and reiterated buy or overweight ratings. For example, JPMorgan upped its target to $65, highlighting NEXTracker’s consistent execution and strong market position. Barclays followed suit, lifting its target to $64 and maintaining an overweight rating. Other significant raises are Roth Capital ($70), Goldman Sachs ($68), Susquehanna ($66), Truist Securities ($65), and BMO Capital ($59).

 

This rise in analyst euphoria comes following NEXTracker's stellar Q4 and FY25 financial performance. The firm posted a quarterly record revenue of $3 billion, up by 18% year-on-year, and more than $4.5 billion in backlog. Net income landed at $158 million for the quarter, where the company realized a healthy GAAP gross margin of 33.1%. Free cash flow for the entire year totaled $622 million and the company saw the year concluded with $766 million of cash and zero debt.

 

NEXTracker growth is being propelled by robust demand for its leading solar tracker solutions, particularly in the extreme weather markets, and new product-line expansion. Its latest acquisition of Bentek Corporation represents a strategic entry into the electrical balance-of-systems (eBOS) arena, making NEXTracker a more comprehensive solar power platform solution provider, not merely a tracker supplier.

 

Looking forward, the firm has provided guidance for fiscal 2026 with revenue expected to be between $3.2 billion and $3.4 billion, adjusted EBITDA of $700 to $775 million, and adjusted diluted EPS of $3.65 to $4.03. Analysts have been positively receptive to this guidance, citing NEXTracker's excellent profitability, market leadership, and conservative debt management as main positives.

 

In short, analysts' consensus is that NEXTracker is positioned for sustained growth, with its financial strength, cutting-edge product strategy, and growing market footprint fueling a wave of upbeat ratings and higher price targets. 

 

Sources: Benzinga, Investing.com, Financial Modeling Prep, BusinessWire