Nextracker's Solar Ascendancy: Analyst Forecasts Doubling of Addressable Market Despite Valuation Hurdles
Portfolio Pulse from Lekha Gupta
BMO Capital Markets analyst Ameet Thakkar initiates coverage on Nextracker Inc. (NASDAQ:NXT) with a Market Perform rating and a $69 price target, citing the company's leadership in the solar tracker market and expected doubling of its addressable market by the end of the decade. Despite Nextracker's strong performance and positive outlook, its current valuation premium and recent outperformance have led to a cautious stance. Investors can also gain exposure to Nextracker through IShares Global Clean Energy ETF (NASDAQ:ICLN) and ProShares S&P Kensho Cleantech ETF (NYSE:CTEX).
March 22, 2024 | 6:35 pm
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NEUTRAL IMPACT
Nextracker Inc. receives a Market Perform rating from BMO Capital Markets with a price target of $69, highlighting its strong position in the solar tracker market but cautioning on valuation.
The Market Perform rating reflects a balanced view on Nextracker's strong market position and growth prospects against its high valuation. The analyst's caution due to valuation may temper investor enthusiasm short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
ProShares S&P Kensho Cleantech ETF (NYSE:CTEX) is highlighted as another ETF through which investors can access Nextracker Inc., pointing to broader investment opportunities in clean technology.
The mention of CTEX alongside ICLN as a means to invest in Nextracker underscores the ETF's relevance to investors interested in clean technology and solar energy, potentially boosting investor interest.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
IShares Global Clean Energy ETF (NASDAQ:ICLN) is mentioned as a way for investors to gain exposure to Nextracker Inc., indicating potential interest from investors focused on clean energy.
Mentioning ICLN as a vehicle for investing in Nextracker suggests potential positive interest and investment flow into ICLN from investors seeking exposure to the solar tracker market.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70