Piper sees solar additions peaking in 2028

Investing.com - Piper Sandler maintains an Overweight rating on Nextracker Inc. (NASDAQ: NXT) with a price target lowered to $110 from $116, citing mark-to-market adjustments. The firm expects tracker companies to maintain book-to-bill ratios above 1.0x heading into the third quarter, with new offtake signings resilient at 4.9 GWdc in the second quarter, down just 8% year-over-year.

The firm projects solar additions will peak in 2028, diverging from the Solar Energy Industries Association's flat outlook through 2031. Section 232 tariffs were unveiled in August but do not take effect until Dec. 4, leading Piper to expect module orders to remain low as developers work through safe-harbored equipment and take longer to finalize 2029-2030 scope and pricing. The firm characterizes these delays as pushouts rather than cancellations.

For Nextracker's second quarter of fiscal 2027, Piper expects revenue of $1,099 million, 3% above consensus, with gross margin of 30.9%. The firm watches for PowerMerge deliveries starting this quarter, which could drive upside to its $40 million eBOS estimate, and the first full quarter of Prevalon fulfilling a hyperscaler order exceeding 1 gigawatt. Management has pre-announced a material acceleration to its 2030 outlook ahead of a Nov. 16 capital markets day.

Piper maintains an Overweight rating on First Solar Inc. (NASDAQ: FSLR) with a price target lowered to $251 from $260. The firm expects third quarter 2026 revenue of $4,902 million within the company's $4.9 billion to $5.2 billion guidance range, with adjusted EBITDA approximately 5% below consensus on South Carolina start-up costs.

Piper reiterates a Neutral rating on Array Technologies Inc. (NASDAQ: ARRY) after management reset fiscal 2026 free cash flow conversion guidance from the mid-40s percentage of EBITDA to the 20s percentage due to accounts receivable pushing into the first quarter of 2027. The firm models third quarter results mostly in line with consensus, with fiscal 2026 adjusted EBITDA of $214 million sitting 3% below consensus of $221 million.

You May Also Be Interested In

• Liquidia Technologies (LQDA) Falls 20%
• TripAdvisor (TRIP) call put ratio 5 calls to 1 put amid wide price movement
• Mattel CEO Kreiz Said Leaving For Paramount Executive Role - Bloomberg