Street View: Sunnova Energy in a pickle after 'going concern' disclosure

Sunnova Energy International

04/03/2025 14:11

** Solar firm Sunnova Energy NOVA.N raised doubts about its ability to continue as a going concern on Monday

** Company said cash flow from its current activities and commitments under existing financing agreements are not sufficient to fund operations for a period of at least one year from the date it issues consolidated financial statements

** Shares down 6.5% at $0.55 premarket, after falling 58% on Monday

GOING CONCERN DOUBT IN FOCUS

** Truist Securities ("hold", removes PT) says, "We believe the going concerns language in NOVA's recent filing could create headwinds from both an origination & capital markets perspective."

** BMO Capital Markets ("market perform", PT: $0.85 ) says, "NOVA finds itself in unenviable position of adding going-concern language and retaining an advisor for potential liability-management strategy, which we think may result in additional pain for remaining equity value"

** Wells Fargo ("underweight", PT: $0.50), says, "NOVA's going concern disclosure could create a negative feedback loop impacting originations, in our view"

 (Reporting by Katha Kalia in Bengaluru)

 ((Katha.Kalia@thomsonreuters.com))