Nextpower (NXT) outlined a major strategic transition at its Analyst Day, presenting a strengthened long-term financial plan that highlights its shift toward a broader structural, electrical, and digital platform from a pure-play tracker, potentially driving margins to roughly 25% by fiscal 2030, BofA Securities said in a Friday note.

Nextpower said Wednesday it now aims to generate revenue of $4.8 billion to $5.6 billion by 2030. This target is supported by products in commercialization, foundations, module frames, electrical balance-of-system and a US-built power conversion system platform, but while these businesses scale, trackers are expected to account for only 60%-65% of sales, down from roughly 90% previously, BofA said.

Analysts surveyed by FactSet project revenue of $5.42 billion in 2030.

BofA noted that foundations and EBOS will fuel most of NextPower's non-tracker expansion, with demand pushing these segments toward roughly $1.83 billion by 2030.

A decline in operating expenses by 2030 could drive adjusted earnings before interest, taxes, depreciation, and amortization margins to 24.6% and adjusted EBITDA to $1.36 billion, above the management's outlook, according to the note.

The firm maintained its buy rating on the stock and raised its price target to $102 from $94.

Shares of the company were up 6.1% in recent trading.

Price: 93.47, Change: +5.38, Percent Change: +6.10