Nextracker rises as BofA upgrades on accelerating solar project deliveries

Flex

29/03/2023 13:43

** Nextracker Inc's  NXT.O  stock up 4.6% at $34 premarket
as BofA Global Research raises solar tracking equipment maker to
"buy" from "neutral"
        ** Brokerage hikes price objective by $4 to $40,
implying 23% upside to stock's last close
  
    ** BofA analyst team led by Julien Dumoulin-Smith say they
see line of sight for NXT to outperform in 2023 and 2024 as
shipments are accelerating, while co's leverage to First Solar
Inc  FSLR.O  is "underappreciated"
        ** NXT has the right forms of steel from U.S. producers
to qualify and claim credits from the 2022 U.S. Inflation
Reduction Act, BofA says
  
    ** Updated model implies shares trade at 10x EBITDA, 14x P/E
vs CY24 estimates, with +20%/+23% CY23/24 top line, "which
defines an attractive way to participate in growth from a
defensive posture," they write in note
    ** Through Tues close, NXT shares up 35.5% from last month's
IPO price
    ** 10 of 13 analysts covering NXT rate stock "buy" or
"strong buy", rest have "hold" recommendations, per Refinitiv,
with $40 median PT

 (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))