Why Is Nextracker (NXT) Stock Rocketing Higher Today

What Happened?

Shares of solar tracker company Nextracker (NASDAQ:NXT) jumped 5.3% in the afternoon session after an analyst at UBS raised the company's price target and the company announced a new product launch in Australia. The UBS analyst increased the price target on the stock to $125 from $110, while keeping a "Buy" rating, signaling continued confidence in the company's potential. Adding to the positive sentiment, Nextracker launched its NX Earth Truss® foundation solution in Australia. The launch was supported by a grant from the Australian Renewable Energy Agency (ARENA). This new product aimed to speed up the development of large-scale solar projects and lower the costs and difficulties associated with building on tough ground, such as hard or rocky soils.

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 37 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 5 days ago when the stock gained 8% on the news that it reported strong third-quarter results that beat analyst expectations and raised its full-year revenue forecast. Revenue for the period increased 42.4% year-over-year to $905.3 million, surpassing estimates, while adjusted earnings per share came in at $1.19, beating the consensus by 17.4%. The strong performance was supported by a growing backlog of orders, which reached $5 billion. However, the company's outlook was mixed. While Nextracker lifted its full-year revenue guidance to $3.38 billion at the midpoint, this figure was slightly below analysts' projections. Additionally, its full-year EBITDA guidance also fell short of Wall Street's expectations.

Nextracker is up 163% since the beginning of the year, and at $104.05 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 $3,414.

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.