Nextracker rises after wave of bullish ratings from IPO banks
06/03/2023 13:33
** Shares of Nextracker Inc NXT.O up 1.9% at $34 premarket
as analysts at banks that underwrote solar firm's IPO initiate
coverage after quiet period ends
** NXT shares on Fri closed at $33.35, up 39% since
last month's IPO
for the subsidiary of Singapore's Flex Ltd FLEX.O
** JP Morgan, one of lead bookrunners for the offering,
starts at "overweight" with $42 PT
** Nextracker is the leading supplier of follow-the-sun
single-axis trackers globally and has 40% market share in US,
JPM says
** NXT's stock trades at 14x its CY24E EV/EBITDA, JPM says,
compared to 12.3x for peer Array Technologies ARRY.O , and
slight premium justified given co's larger rev, leading position
within international markets, relatively more tenured management
team and stronger balance sheet
** Truist initiates at "buy" ($40 PT), saying stock's
post-IPO run based on continued significant investor appetite
for quality exposure to utility scale solar
** Other bullish ratings so far include Barclays
("overweight", $42), Mizuho ("buy", $40) and Scotiabank
("outperform", $38)
(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))