NEXTracker Inc Ordinary Shares - Class A

NXT: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$79.00	Grpn	Rlggvjx

Nextracker Earnings: Another Beat and Raise, but Expectations Are Increasingly High

Brett Castelli

Feb 1, 2024

We increase our fair value estimate for no-moat Nextracker to $37 per share from $34 after fiscal 2024 third-quarter results. Driving our higher valuation is a slight boost to our gross margin forecast. However, we continue to forecast moderating margins long term. At current prices, we view shares as overvalued as we believe investors are extrapolating recent margin outperformance to continue indefinitely.

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