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Nextracker (NXT): Assessing Valuation After Launch of NX PowerMerge Connector and Strengthened eBOS Lineup

Simply Wall St · 09/17 20:15

If you are weighing what to do with Nextracker (NXT) right now, the recent unveiling of the NX PowerMerge trunk connector is a big development you should not overlook. This is the first new product to hit the company’s eBOS lineup since Nextracker acquired Bentek, and it looks engineered to solve field installation headaches with more flexible, cost-efficient solar systems. The market seems to see this new launch as a testament to Nextracker’s commitment to scaling high-performance solar solutions, and positive brokerage sentiment has lent an added note of confidence to investors watching the story unfold.

This new product announcement comes after a period of significant momentum for Nextracker’s stock. Over the past year, shares have delivered a 79% total return, outpacing many peers, and the stock has climbed nearly 10% this past month alone. While the product news stands out, it follows a year marked by growth and a shift in how investors view risk and future potential in clean energy infrastructure. The launch, along with recent moves such as the Bentek acquisition, is helping to paint a picture of a company still in the middle of reinvention and expansion.

After such strong gains, the key question now is whether Nextracker is undervalued at these levels or if the market is already fully pricing in its growth plans. What should investors do next?

Most Popular Narrative: 5.6% Undervalued

The most widely followed narrative sees Nextracker trading at a discount to its fair value, with future growth and ongoing innovation shaping its upside potential.

Nextracker's global expansion of R&D facilities in the U.S., Brazil, and India, along with the partnership with UC Berkeley for solar technology research, is expected to reinforce its commitment to innovation and position the company as a leader in solar technology, impacting long-term revenue and growth.

Curious what is powering this undervaluation? This narrative is built on an aggressive mix of ambitious growth projections, innovative R&D investments, and a future profit multiple that sets a benchmark for what successful solar hardware companies can achieve. The real twist is in the hidden financial drivers and bullish assumptions that underpin its fair value. These are the numbers Wall Street is watching.

Result: Fair Value of $70.84 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing uncertainties around tariffs and heavy reliance on the U.S. market could disrupt Nextracker’s growth trajectory if conditions change unexpectedly.

Find out about the key risks to this Nextracker narrative.

Another View: Our DCF Model’s Result

While analysts see potential in Nextracker using future earnings estimates, our SWS DCF model takes a different approach. It also finds the shares undervalued right now. Could both methods be right, or are risks hiding in plain sight?

Look into how the SWS DCF model arrives at its fair value.
NXT Discounted Cash Flow as at Sep 2025
NXT Discounted Cash Flow as at Sep 2025
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Nextracker for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Nextracker Narrative

If you have a different viewpoint or want to dig into the numbers yourself, it takes just a few minutes to build your own case from the data. Do it your way

A great starting point for your Nextracker research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.