On Thursday, Baird initiated coverage on Nextracker Inc (NASDAQ:NXT), a company specializing in solar tracking systems, with an Outperform rating and a price target set at $71.00 per share. Nextracker, recognized for its leading position in the design and innovation of solar trackers, has achieved global shipments exceeding 90 gigawatts to date.
Nextracker's business model is highlighted for its simplicity and focus on the utility-scale solar industry. The firm's approach is supported by a healthy balance sheet and proprietary technology that sets it apart from competitors. According to the initiating analyst, these factors contribute to Nextracker's attractive investment profile within the renewable energy sector.
The company's substantial backlog, which exceeds $3 billion, is noted as a key factor in providing clear revenue visibility. This backlog is comprised of sales to a diverse range of customers, including utilities, engineering, procurement, and construction firms (EPCs), independent power producers (IPPs), and other asset owners.
Baird's positive outlook on Nextracker is underpinned by the company's status as a pure-play investment in the expanding utility-scale solar market. The analyst's remarks underscore the company's potential for growth and the strategic positioning of its technology and services in a rapidly evolving industry.
With the Outperform rating, Baird signals confidence in Nextracker's future performance and its ability to capitalize on the opportunities within the global solar energy market. The set price target of $71.00 reflects the firm's assessment of the company's value and prospects for investors.
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