NextPower Inc. (NASDAQ:NXT) stock rose Thursday as the company outlined a major shift from a tracker-focused model to a broader structural, electrical, and digital platform.
Bank of America Securities analyst Dimple Gosai raised the price forecast on the company to $102 (from $94), while reiterating a Buy rating.
Earnings Snapshot
Last month, Nextracker reported second-quarter fiscal 2026 results that surpassed top- and bottom-line expectations, driven by robust demand across U.S. and international markets and continued momentum from its recently acquired businesses.
Also Read: Nextracker Keeps Winning With Record Bookings And Fresh Analyst Optimism
The company raised its fiscal 2026 revenue forecast to $3.275-$3.475 billion, up from $3.20-$3.45 billion, implying 14% year-on-year growth at the midpoint.
Adjusted EBITDA is now expected between $775 million and $815 million, while EPS guidance increased to $4.04–$4.25.
Analyst View
The analyst writes that NextPower is evolving from a pure tracker play into a broader structural, electrical, and digital platform with stronger, more sustainable earnings.
The company’s fiscal 2030 revenue outlook of $4.8 billion–$5.6 billion is supported by commercialized products rather than aspirational expansions, adds the analyst.
Gosai says that as these businesses scale, they create a significantly different revenue mix and margin profile than Street expectations.
The analyst’s rating reflects deployed systems, rising attach rates, and clear customer demand.
Estimates Revision
The analyst raised the EPS estimate to $4.11 (from $4.05) for fiscal 2026.
Meanwhile, the analyst lowered the EPS estimate to $4.69 (from $5.25) for fiscal 2027 and $5.85 (from $6.79) for fiscal 2028.
The analyst projects a 12% revenue CAGR to $5.52 billion by fiscal 2030, a 110 bps gross margin expansion from fiscal 2026 to fiscal 2030, and adjusted EBITDA of $1.36 billion (above management’s $1.1 billion–$1.3 billion guidance).
Gosai expects growth in the electrical and software mix to offset structural dilution and operating expenses decline to ~8% of sales.
Price Action: NXT shares were trading higher by 6.42% to $93.74 at last check Friday.
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