Nextpower (NXT): Reassessing Valuation After Jefferies Downgrade, Insider Sale and Solar Sector Weakness

A Jefferies downgrade and a sizable insider sale have just put Nextpower (NXT) back under the microscope, as the stock wobbles alongside a broader pullback across the solar sector.

See our latest analysis for Nextpower.

Those concerns come after a huge run, with the latest share price at $88.7 and a standout year to date share price return of roughly 125 percent, alongside a roughly 152 percent 1 year total shareholder return. This suggests momentum is still positive even if short term sentiment has cooled.

If this solar name looks a little stretched after its rally, it could be a good moment to compare it with other high growth tech and AI stocks using high growth tech and AI stocks.

With earnings still growing and the share price sitting about 14 percent below the average analyst target, investors now face a key question: is Nextpower still undervalued or is the market already pricing in its future growth?

Most Popular Narrative: 13.5% Undervalued

Nextpower's most followed narrative pegs fair value just above $102, notably higher than the $88.7 last close, framing the stock as still mispriced.

The record backlog exceeding $4.5 billion, with continued strong demand and bookings indicates excellent visibility and confidence in future revenue growth, providing a solid foundation for future financial performance.

Read the complete narrative.

Want to see what kind of revenue climb, margin path and future earnings multiple are embedded in that upside, and how they all fit together? Unlock the full valuation framework behind this fair value estimate.

Result: Fair Value of $102.54 (UNDERVALUED)

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

However, ongoing policy uncertainty around tariffs and heavy reliance on the U.S. market could pressure margins and disrupt Nextpower's carefully modeled growth path.

Find out about the key risks to this Nextpower narrative.

Build Your Own Nextpower Narrative

If this perspective does not quite match your own view or you prefer digging into the numbers yourself, you can quickly craft a personalized narrative in under three minutes, Do it your way.

A great starting point for your Nextpower 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.

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