Artificial intelligence power needs will continue boosting shares of Nextracker and Sunrun higher, according to Citi. In a Monday note, the bank upgraded both solar stocks to buy from neutral ahead of earnings. Nextracker is scheduled to report earnings on Thursday. Sunrun’s report is slated for release on Nov. 6. Shares of Nextracker and Sunrun have respectively surged 143% and 122% this year. Solar stocks dove last year, following President Donald Trump’s election, but have roared back since April despite his anti-renewables stance because of growing AI power needs. Since bottoming in April, the Invesco Solar ETF is up 81.5%. TAN NXT,RUN mountain 2024-10-01 TAN/NXT/RUN chart Citi analyst Vikram Bagri hiked his price target on shares of Nextracker to $114 per share from $66. This revised forecast implies an upside of 28% ahead. The analyst cited Nextracker’s upcoming analyst day, its first since going public, as a catalyst that could provide more clarity for the company. “We are upgrading NXT to Buy/High Risk (1H) ahead of its highly anticipated capital markets day on November 12 as we believe the potential for revenue growth indicated in consensus is underappreciated,” he wrote. “Potential to return capital to shareholders starting next year will put NXT in a relatively small group of renewables companies that have done so. This should attract a new class of income-oriented investors to the name.” Bagri also applauded the company’s experienced management team for its strong track record. Meanwhile, Nextracker also offers investors diversified exposure to the global solar adoption business, the analyst added. “High-quality customer mix and record > $4.5B in backlog provide visibility on medium-term revenues, which we think should warrant a premium valuation,” he wrote. Bagri also upgraded shares of Sunrun to buy, citing lower leverage and significantly reduced policy risk. “RUN has consistently proactively managed its balance sheet and has never issued equity, a testament to the steady hands of the management and Board. Having paid down recourse debt, leverage levels have declined,” he wrote. The analyst also applauded Sunrun’s dominant market position as the largest pure play residential solar installer, currently possessing 19% U.S. market share. Bagri believes that Sunrun’s market share could increase over time, helping facilitate even more attractive terms with equipment providers. The analyst’s revised forecast of $26 per share, up from $11, corresponds to a 27% gain. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
