What Happened?
Shares of solar tracker company Nextracker (NASDAQ: NXT) jumped 3.5% in the afternoon session after 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.
After the initial pop the shares cooled down to $85.81, up 3.6% from previous close.
Is now the time to buy Nextracker? Access our full analysis report here.
What Is The Market Telling Us
Nextracker’s shares are extremely volatile and have had 33 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 4 days ago when the stock gained 6.2% on the news that the stock's positive momentum continued as Goldman Sachs raised its price target, signaling a more positive outlook. The investment bank increased its price target by 12.66% to $89 while keeping its "Buy" rating. This move was part of a broader trend of positive sentiment from financial analysts. In the preceding weeks, Deutsche Bank started coverage with a "Buy" rating and an $88 price target, and JP Morgan also increased its target. The positive analyst coverage came as the stock reached an all-time high. Additionally, the solar technology company announced it would host a Capital Markets Day in November to outline its growth plans and financial roadmap for investors.
Nextracker is up 117% since the beginning of the year, and at $85.81 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 $2,817.
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
