Shares of Nextracker Inc (NASDAQ: NXT) have already gained more than 20% in recent days but a Bank of America analyst is convinced that it’s still not too late to invest in this solar solutions company.
Nextracker stock could benefit from the IRA
On Wednesday, Julien Dumoulin-Smith upgraded the solar stock to “buy” and raised his price objective to $40 that suggests a 23% upside on its previous close.
He’s bullish on the Nasdaq-listed firm primarily because it’s well positioned to benefit from the Inflation Reduction Act.
We continue to see Nextracker as a market leader both in technology and share, and a best-in-class way to participate in a relatively low risk offensive story in 2023 offering compelling return from current levels.
Nextracker stock debuted only last month at a per-share price of about $30.
Nextracker is actively delivering to projects
Dumoulin-Smith is constructive on the solar tracking and software solutions provider also because it is now actively delivering to over 3 GW of U.S. projects.
We see upside on near-term numbers via an impressive set of large-scale multi-year projects that we believe can offer line of sight through both 2023 and 2024. We reiterate significant pent up project demand for NXT.
Also on Wednesday, Nextracker announced an agreement with Strata Clean Energy to supply 810 MW of solar trackers for its large-scale power projects in Texas, Arizona, and Virginia.
Lastly, revenue growth makes up for another great reason to buy Nextracker stock. At $1.5 billion, its revenue for fiscal 2022 was up 25% versus the prior year.
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