Mizuho Securities recently updated its target price for Nextpower Inc. (NASDAQ:NXT) to $81.00, up from a previous $76.00, while maintaining a Neutral rating on the stock. This price target is notably below the current trading price, which stands around $105.18, with analyst forecasts ranging between $52 and $128. Valuation metrics calculated by InvestingPro indicate that Nextpower is presently trading above its assessed fair value.
The rationale behind Mizuho's price target increase centers on expected fiscal third-quarter earnings surpassing consensus projections, along with the company's trajectory aligning toward the upper bounds of its fiscal 2026 guidance. Mizuho credits Nextpower's management for a conservative approach combined with a history of consistent execution, contributing to sustained profitability. Over the trailing twelve months, Nextpower has recorded a diluted earnings per share of $3.85 and maintained a gross profit margin near 33.24%, underscoring operational efficiency.
Looking ahead, Mizuho anticipates a book-to-bill ratio approximating 1.0 and forecasts demand to be broadly flat over the coming two-year period. Market participants are expected to focus on new order bookings and the backlog as significant indicators for demand in fiscal years 2027 and 2028. Additionally, the firm adjusted its sales model in accordance with information provided at Nextpower's November Analyst Day, specifically revising the sales mix between tracker and non-tracker products. This update reflects a forecast of greater price reduction pressure on tracker goods in the first half of 2026, signaling an environment of intensified competition.
The uplift in Mizuho's price target by about 7% is attributed primarily to improved credit quality and portfolio diversification. Despite this, the Neutral rating persists, driven by concerns over valuation and potential uncertainties regarding the early market adoption of non-tracker products.
Meanwhile, other analysts have also revised their outlooks on Nextpower. TD Cowen raised their price target to $88, motivated by robust quarterly results and growth in backlog, particularly noting expanded revenue streams in the U.S. and European markets. They highlight that despite some tariff-related headwinds, Nextpower sustains strong gross margins, assisted by manufacturing credits under the Inflation Reduction Act.
Similarly, RBC Capital has elevated its price target to $96, recognizing Nextpower's transition toward being a comprehensive solutions provider, enabling the capture of a larger share of customer spend beyond hardware. BofA Securities followed, increasing its price target to $102, maintaining a Buy rating based on the company's broadening platform and anticipated more persistent earnings. UBS kept its price target steady at $125, emphasizing growth opportunities in adjacent product categories and a promising expansion into higher-margin inverter segments.
Additionally, NextGen Digital Platforms Inc. recently completed the initial tranche of a private placement, raising $826,000 through units comprising common shares and purchase warrants. Each warrant confers the right to acquire an additional share under specified conditions.