Barclays downgrades Nextracker on relative valuation call

Barclays downgraded Nextracker (NXT) to Equal Weight from Overweight with a price target of $63, up from $55. The analyst believes shares of Array Technologies (ARRY) should outperform Nextracker in the coming months. Nextracker may provide an initial fiscal 2025 outlook below consensus estimates, the analyst tells investors in a research note. The firm says Nextracker likes to beat and raise and given the industry-wide constraints around transformers and interconnection queues, the company “may want to factor in some cushion for those things.” Despite the downgrade, Barclays believes Nextracker should be a core holding. The downgrade is more a relative valuation call, the firm notes.