IRS Policy Boosts Nextracker (NXT) Outlook, Guggenheim Upgrades to Buy

Nextracker Inc. (NASDAQ:NXT) is one of the best alternative energy stocks to buy right now. Guggenheim upgraded the stock from a Neutral to a Buy on August 18, setting a price target of $74. The move follows updated IRS safe-harbor rules that favor tracker companies, specifically recognizing racking installation and off-site work as qualifying activities for clean energy tax credits.

Guggenheim analyst Joseph Osha highlighted the benefit to Nextracker’s core offerings, including mounting and support structures, which now meet the physical work test for credit eligibility.

The firm also emphasized Nextracker’s strong domestic supply chain, positioning it well under Foreign Entity of Concern (FEOC) restrictions. Despite a 50% stock surge over the past year, Guggenheim sees further upside, citing attractive valuation multiples supporting its bullish stance.

Nextracker Inc. (NASDAQ:NXT) is an alternative energy company that provides solar trackers and software solutions for utility-scale and distributed generation solar projects. It is the world’s leading supplier of solar trackers, which optimize energy production by following the sun’s movement. Its products enhance power generation, protect against extreme weather, and integrate with advanced solar technologies.

While we acknowledge the potential of NXT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: Top 10 Tech Stocks with Strong Return on Equity and 13 Best NYSE Penny Stocks to Invest in Now.

Disclosure: None. This article is originally published at Insider Monkey.