Bank of America says this solar stock is ‘firing on all cylinders’

Nextracker is “firing on all cylinders” after reporting earnings that beat estimates for a fourth straight quarter with a growing backlog of orders, according to Bank of America. Analyst Dimple Gosai raised her stock price target for Nextracker to $64 from $60, implying 39% upside from Wednesday’s close. She also reiterated her buy rating on the stock. Nextracker’s management “is building a track record of outperforming its targets which should support a multiple expansion,” Gosai told clients in a research note Wednesday. The company builds devices that allows solar panels to track the direction of the sun, which helps improve solar energy efficiency. Nextracker reported a backlog of $4 billion for its 2024 fiscal year. The company’s quarterly revenue of $737 million came in well above Bank of America’s estimate of $676 million. Nextracker’s stock is up 10% this week, though shares are about flat in 2024. “Although not immune from competitive market pressures, we argue NXT’s global scale and sheer volume of projects will absorb some of these risks,” Gosai said.