Sunnova Energy downgraded to Hold at Jefferies on risk to missing targets

As previously reported, Jefferies downgraded Sunnova Energy (NOVA) to Hold from Buy with a price target of $2, down from $9. Despite Sunnova’s efforts to prioritize domestic content and monetize tax credits, the firm has increasing doubts over the company achieving the full $100M of cash generation in Q4 and believes 2025-2026 targets of $750M also are at risk, the analyst tells investors. Noting softness in the residential market and unexpected tightening in tax equity markets, the firm thinks it’s likely that Sunnova misses on targets and the firm no longer sees the priority as cash generation, but rather addressing corporate debt and cutting costs, the analyst added.

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