What Happened?
Shares of solar tracker company Nextracker (NASDAQ: NXT) jumped 2.8% in the afternoon session after it signed a multi-year supply agreement with T1 Energy valued at over $75 million.
Under the deal, Nextracker agreed to supply its patented steel module frames for T1 Energy's new 5-gigawatt solar manufacturing plant in Dallas. The partnership aimed to replace imported aluminum frames with domestically produced specialty steel ones, boosting local manufacturing. To support the new agreement, Nextracker also announced plans to increase its U.S. steel frame production. The company intended to add more manufacturing lines in Texas to its existing capacity in the Midwest. Investors reacted positively to the news, which signaled a significant expansion of Nextracker's domestic operations and a substantial new revenue stream.
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What Is The Market Telling Us
Nextracker’s shares are extremely volatile and have had 34 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock gained 3.5% on the news that Susquehanna maintained its "Positive" rating on the company while raising its price target to $100 from $76. The new target represented an approximate 31.6% increase. This decision followed a series of positive updates from other financial firms, reflecting broader confidence in the solar hardware manufacturer. A few days prior, UBS also increased its price target, citing Nextracker's strong position to capture a greater share of advanced manufacturing tax credits. Other analysts at firms including Goldman Sachs and Deutsche Bank had also recently issued or reiterated positive outlooks on the stock, contributing to the favorable sentiment among investors.
Nextracker is up 131% since the beginning of the year, and at $91.30 per share, has set a new 52-week high. Investors who bought $1,000 worth of Nextracker’s shares at the IPO in February 2023 would now be looking at an investment worth $2,997.
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