KeyBanc Capital Markets upgraded Nextpower (NASDAQ:NXT) stock from Sector Weight to Overweight and assigned a price target of $142.00, which implies about a 34% potential upside from the current trading level of $105.91. The move reflects the firms view that Nextpowers risk-reward profile has become more attractive as multi-year growth drivers become clearer and the company builds a platform that extends beyond traditional solar trackers.
KeyBanc highlighted that Nextpower has delivered a strong share-price performance, with the stock up 167% over the past year, a backdrop that helped inform the upgrade. Sophie Karp, the KeyBanc analyst covering the name, emphasized the increasing depth of Nextpowers portfolio along the least-commoditized segments of the solar balance-of-system value chain. That positioning, KeyBanc said, should help the company preserve competitive advantages and protect margins.
Supporting that view, InvestingPro data cited by KeyBanc shows Nextpower reporting a gross profit margin of 33.2%. The firm also noted Nextpowers debt-free balance sheet and expanding cash balances, which provide optionality and the ability to repurchase shares on an opportunistic basis. InvestingPro data referenced in the analysis indicates the company holds more cash than debt and maintains a current ratio of 2.18, with liquid assets exceeding short-term obligations.
KeyBanc said managements long-term targets have been reaffirmed and that the companys product mix is shifting toward higher-value solutions. On valuation metrics, KeyBanc pointed out a multiple of 20.1x for Nextpower versus 29.5x for industrial peers with high returns on capital, characterizing Nextpower as "an ultimate compounder worthy of an Overweight rating."
At the same time, InvestingPros Fair Value assessment included in the available data suggests the stock may be overvalued at current levels. Additional Pro Research material referenced in the briefing indicates there are further ProTips and a financial health score categorized as "GREAT," but those assessments were not described in detail in KeyBancs published comments.
Separately, Nextpower reported third-quarter results for fiscal 2026 that exceeded expectations. The company posted earnings per share of $1.10, above the consensus forecast of $0.70, and revenue of $909 million, ahead of the anticipated $745.13 million. Management said the quarter reflected a book-to-bill ratio greater than 1.0 and a record backlog, driven by strong performance in the U.S. and record bookings in Europe. Nextpower also reported expansion into two additional countries during the period.
Following the quarterly beat, JPMorgan raised its price target on Nextpower to $125.00 from $110.00 while retaining an Overweight rating.
The combination of a product mix shift, solid profitability metrics, ample liquidity and recent operating momentum underpins KeyBancs decision to upgrade the stock. Investors evaluating the name may weigh the firms positive outlook against InvestingPros fair-value caution when considering the stocks current market price.