Analyst Downgrades Sunnova Energy Amid Challenging US Solar Market, Prefer Peers
Portfolio Pulse from Lekha Gupta
BMO Capital analyst Ameet Thakkar has downgraded Sunnova Energy International Inc (NOVA) to Market Perform from Outperform, lowering the price target to $25 from $27. The downgrade is due to the challenging US residential solar market and NOVA's less exposure compared to its international peers. Thakkar also revised the 2023 EPS estimate to $(1.54) from $(1.49). NOVA shares are currently trading lower by 5.5% at $21.33.
July 21, 2023 | 5:59 pm
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Sunnova Energy has been downgraded by BMO Capital due to challenging conditions in the US solar market and less exposure compared to international peers. The 2023 EPS estimate has also been revised downwards.
The downgrade by BMO Capital is based on the challenging conditions in the US solar market and NOVA's less exposure compared to its international peers. This is likely to negatively impact investor sentiment, leading to a potential decrease in the stock price. The downward revision of the 2023 EPS estimate also indicates a less optimistic outlook for the company's future earnings, which could further weigh on the stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100