Nextpower (NXT) Stock Rises 131% Yearly, Faces Growth Challenges Ahead
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Strong Financial Position: As of Q2 FY2026, Nextpower has no long-term debt and a cash balance of approximately $845 million, indicating a solid financial foundation in the renewable energy sector that supports future business expansion.
- Robust Backlog: Nextpower's backlog stood at around $5 billion at the end of Q2 FY2026, with projected revenue of approximately $3.5 billion for FY2026, suggesting ample work lined up primarily from its core solar tracking technology for the upcoming year.
- Reasonable Valuation: The company's price-to-sales ratio is 3.9, below its five-year average of 4.4, and its price-to-earnings ratio is 23, below the five-year average of 26, indicating a relatively fair valuation given its strong pipeline and debt-free status.
- Growth Plan Risks: While Nextpower anticipates overall revenue growth exceeding 50% from FY2026 to FY2030, its solar tracking business is projected to grow only 20%, implying that future growth will heavily rely on the successful execution of new business lines, which investors should closely monitor.
Analyst Views on NXT
Wall Street analysts forecast NXT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NXT is 104.11 USD with a low forecast of 76.00 USD and a high forecast of 125.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
14 Buy
6 Hold
0 Sell
Moderate Buy
Current: 98.650
Low
76.00
Averages
104.11
High
125.00
Current: 98.650
Low
76.00
Averages
104.11
High
125.00
About NXT
Nextpower Inc., formerly Nextracker Inc., designs, engineers, and delivers an advanced energy technology platform for solar power plants. Its integrated solutions are designed to streamline project execution, increase energy yield and long-term reliability. The Company's products and services include trackers, foundations, eBOS, software, controls, and module mounting. Its services include design, deploy, and operate. Its design services include site evaluations, design and engineering, and training programs. Its deploying services include efficient commissioning, fully equipped, and fast-tracked scheduling. Its operating services engaged in the monitor, manage, and mitigating risk with tools and tech.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
