Jefferies raises Nextracker stock price target to $77 on international growth

Nextracker Inc. (NXT) reported a strong Q4 2025, surpassing expectations with $1.29 EPS and $924 million revenue, alongside robust FY26 guidance. This performance, coupled with the $78 million Bentek acquisition for eBOS expansion, has driven significant analyst upgrades, including Jefferies raising its price target to $77 from $63 while maintaining a Buy rating. Analysts cite strong international growth, new segments, and the potential of its non-tracker business as key drivers, underscoring Nextracker's strategic momentum and robust market position, reflected in its 81.91% year-to-date stock gain.

Analysis

Nextracker Inc. (NXT) is exhibiting significant operational and strategic momentum, underscored by a Q4 2025 earnings report that substantially surpassed expectations with an EPS of $1.29 versus a $0.73 forecast and revenue of $924 million against a $766.4 million consensus. This performance, reflecting a 26% year-over-year Q4 revenue increase and an 18% full-year revenue rise to $3 billion, is complemented by robust fiscal 2026 guidance projecting revenue between $3.2 billion and $3.4 billion. This has triggered a wave of analyst confidence, with Jefferies raising its price target to $77, alongside similar upgrades from Barclays, JPMorgan, and Mizuho. The bullish thesis is supported by two key strategic developments: the $78 million acquisition of Bentek to enter the electrical Balance of Systems (eBOS) market, and analyst projections for the non-tracker business to grow from a low single-digit percentage to over 30% of the total within five years. With the stock already up 81.91% year-to-date, the market has priced in significant optimism, and the company's analyst day scheduled for fall 2024 is now a key event to watch for further catalysts.

Key Decisions for Investors

• Given the powerful earnings beat and strong forward guidance, the fundamental momentum is clearly positive; however, investors should weigh this against the stock's substantial 81.91% year-to-date appreciation when assessing valuation and potential entry points.
• The upcoming analyst day in fall 2024 should be monitored closely for potential new deal announcements, which could serve as a significant near-term catalyst and validate the bullish growth narrative.
• Investors should track the integration of the Bentek acquisition and the growth of the electrical Balance of Systems (eBOS) segment, as its projected expansion is a critical component of the company's long-term diversification and a core pillar of the analyst investment thesis.