Overview
BMO Capital Markets increased its price target for Nextpower (NASDAQ:NXT) to $104.00 from $93.00, but kept a Market Perform rating on the stock. The firm said the target bump follows a third quarter that it described as coming in "well ahead of consensus."
Quarterly performance and outlook
Nextpower reported fiscal third-quarter revenue of $909 million, which exceeded consensus by 12%. The company delivered $214 million of EBITDA, outpacing expectations by 19%. BMO attributed a portion of the upside to deployments in the United States being pulled forward within the quarter.
Following the quarter, Nextpower raised its fiscal year 2026 outlook, moving the company closer to BMO’s previously above-guidance estimates. The company’s guidance for 2027 remained unchanged, a result BMO characterized as expected.
Backlog, order flow and capital actions
BMO noted that Nextpower’s backlog and current orders imply a book-to-bill ratio greater than 1.0x, a position that includes projects tied to the firm’s Saudi joint venture. In addition, Nextpower announced a $500 million share repurchase plan.
Valuation and analyst positioning
Despite the encouraging results and the price-target increase, BMO left its Market Perform rating in place. The firm observed that the stock trades at 22x/20x its calendar year 2027/28 EBITDA estimates on a basis that excludes production tax credits.
Other brokerages also revised their views after the quarter. Jefferies raised its price target to $122 and maintained a Buy rating. UBS increased its target to $140 and highlighted Nextpower’s leadership in clean energy and its strong customer relationships. KeyBanc upgraded the stock to Overweight, pointing to growth prospects beyond traditional solar trackers. JPMorgan raised its price target to $125, citing a record backlog and strong market execution in the U.S. and Europe.
Implications
The combined analyst activity and the company’s operational update underscore momentum in U.S. demand and an expanding backlog that includes international joint-venture projects. The share repurchase announcement adds an additional capital return dimension to the company’s outlook.
Key financials and analyst moves
- Q3 revenue: $909 million, 12% above consensus.
- Q3 EBITDA: $214 million, 19% above expectations.
- BMO price target: raised to $104 from $93; rating Market Perform maintained.
- Jefferies price target: $122, Buy; UBS price target: $140; KeyBanc upgraded to Overweight; JPMorgan price target: $125.
- $500 million share repurchase plan announced.