Citigroup Lifts Nextpower Price Target to $145 After Q4 EPS Beat
NXT•Nextpower reported Q4 EPS of $1.05 beating expectations by 18% and revenue of $880.5M topping forecasts by 9%, driven by $47M in IRA 45X tax credits and net income of $151M. Following strong results, Citigroup raised its price target to $145 and shares surged 14% to a 52-week high.
1. Q4 Financial Results
Nextpower delivered Q4 EPS of $1.05, 18% above the $0.89 consensus estimate but down from $1.29 a year ago. Revenue of $880.5 million exceeded forecasts by over 9%, marking the fourth consecutive quarter of both earnings and revenue beats.
2. Tax Credits Contribution
The quarter included $47 million from IRA 45X advanced manufacturing tax credits, which lowered the company’s tax expense and helped drive net income of $151 million. This demonstrates the benefit of U.S. incentives on Nextpower’s profitability.
3. Analyst Upgrade and Stock Reaction
Citigroup maintained its Buy rating and raised its price target from $114 to $145, signaling increased confidence in Nextpower’s outlook. Shares jumped 14.04% to $156.78, setting a new 52-week high as investors reacted positively to the updated guidance.
