Stifel analyst Matthew Sheerin raised the price target on Flextronics (NASDAQ: FLEX) to $19.00 (from $16.00) to better reflect the potential value of the company's Nextracker solar-tracking business. Nextracker is the leading player in the ~$2.6B revenue market for solar trackers. The No. 2 player in the space, Array Technologies Inc. (NASDAQ: ARRY) went public last month, and trades at ~29x forward EV/EBITDA.

The analyst maintained a Buy rating, stating "Flex has acknowledged the interest in Nextracker, and its desire to 'maximize shareholder value'. Commenting on Nextracker at an investor conference on Tuesday, Flex's CFO said '...this particular situation is definitely a priority for us'. How and when Flex monetizes this asset is still uncertain, but we believe it is likely material enough to start embedding into valuation. Meanwhile, we remain bullish on the core EMS business and margin-expansion story." .