On Monday, Piper Sandler, a financial services firm, adjusted its price targets on shares of two energy sector companies. Nextracker Inc (NASDAQ:NXT) saw its price target increased to $66 from $63, while maintaining an Overweight rating on the stock.
The adjustment was attributed to heightened long-term international growth projections, which were slightly balanced by the anticipation of lower long-term margins, as international operations are expected to yield lower margins compared to domestic ones. The valuation method, an 8-year discounted cash flow (DCF), and the discount rate of approximately 10% remain consistent with prior evaluations.
Concurrently, Piper Sandler reduced its price target for SolarEdge Technologies, Inc. (NASDAQ:SEDG) to $73 from $77. The updated targets reflect the firm's latest analysis and expectations for the performance of the respective companies.
Nextracker's revised price target follows the firm's analysis of the company's international growth potential. Despite the expectation for international margins to be more subdued compared to domestic margins, the overall growth assumptions warranted an increase in the target.
The price target for SolarEdge Technologies was lowered without a detailed explanation provided in the context. However, price target adjustments typically result from changes in market conditions, company performance, or projections.
Piper Sandler's updates come as the energy sector continues to evolve, with various companies expanding their international presence and adjusting to market demands. The new price targets for Nextracker and SolarEdge Technologies will be watched closely by investors as they assess the companies' future prospects and position in the market.
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