Sunnova Energy down after Jefferies downgrades to 'hold', cuts PT

Sunnova Energy International

07/02/2025 14:55

** Shares of residential solar firm Sunnova Energy
International  NOVA.N  fall 3.6% to $2.38
    ** Jefferies downgrades the stock to "hold" from "buy" and
cuts price target to $2 from $9
    ** New price target represents a 18.7% downside to the
stock's last close
    ** Brokerage says softness in the residential solar market
and unexpected tightening in tax equity markets in response to
growing uncertainty on anything Inflation Reduction Act-related
have weighed on NOVA
    ** "We have increasing doubts over the company achieving the
full $100 mln of cash generation in Q4 and believe 2025-2026
targets of $750 mln are at risk as well" - Jefferies
    ** Brokerage says it no longer sees the priority as cash
generation but rather addressing debt and cutting costs; expects
NOVA to return to stronger cash generation in later years
    ** 12 of 24 brokerages rate the stock "buy" or higher, 11
"hold" and 1 "sell"; their median PT is $5.75 - data compiled by
LSEG
    ** Including session's moves, stock down 28.3% YTD

 (Reporting by Pooja Menon in Bengaluru)
 ((Pooja.Menon@thomsonreuters.com;))