Jefferies has raised its price objective on Nextpower (NASDAQ:NXT) to $122.00 from $107.00 while maintaining a Buy rating, responding to the company's fiscal third-quarter performance that outpaced market expectations.
Nextpower reported revenue of $909 million, which exceeded consensus estimates by 12%. EBITDA came in at $214 million, beating forecasts by 19%. Company management attributed the stronger-than-expected outcomes in part to increased demand pull from the United States.
Alongside the quarterly results, Nextpower adjusted its fiscal 2026 guidance upward by roughly 3% and introduced a new share repurchase program totaling $500 million. The company said the buyback equates to about 3% of its market capitalization and will be executed over a three-year period.
Order momentum was also highlighted. Nextpower disclosed record bookings and a backlog that now tops $5 billion. That backlog figure includes the company's proportionate share of an approximately 2.3GW joint venture in Saudi Arabia.
Jefferies analyst Julian Dumoulin-Smith pointed to these operational and financial positives in his research note as the rationale for the higher target.
Additional analyst moves and metrics
Market reactions from other firms followed the results. JPMorgan raised its price target for Nextpower to $125 and maintained an Overweight rating, citing the company’s strong U.S. performance and record bookings in Europe. UBS lifted its target to $140, attributing the increase to Nextpower’s leadership position in solar trackers and durable customer relationships. KeyBanc Capital Markets upgraded the stock to Overweight and set a $142 price target, referencing the company’s multi-year growth drivers and expansion beyond traditional solar tracker offerings.
On an earnings-per-share basis, Nextpower reported $1.10 for the fiscal third quarter, above the forecasted $0.70. The company’s revenue outpaced estimates as well, with the $909 million result compared with an anticipated $745.13 million.
Implications for capital allocation and growth
The simultaneous combination of stronger operating results, a modestly raised guidance trajectory, and a sizable buyback program signals a focus on balancing growth with shareholder returns. The record backlog, which incorporates the Saudi joint venture exposure, underpins near-term demand visibility while the analyst target revisions reflect growing confidence among sell-side firms.
While the news flow is largely favorable, investors and market participants will be watching execution on the buyback timetable, delivery on the incremental guidance, and how much of the backlog converts to revenue over coming quarters.