Sunnova Energy Poised To Gain Market Share Faster As Industry Shifts Towards Leases From Loans: Analyst
Portfolio Pulse from Lekha Gupta
Mizuho Securities analyst Maheep Mandloi initiated coverage on Sunnova Energy International Inc (NOVA) with a Buy rating and a $20 price target, citing the company's potential to gain market share amid higher interest rates and a shift in the industry from loans to leases. Mandloi expects NOVA to outpace market share growth through FY26 due to strong demand for their lease/PPA offerings and IRA tax credit benefits. The analyst also highlights NOVA's unique dealer strategy, projecting over 30% Y/Y customer growth in FY24 and increasing unlevered IRRs. Despite anticipating a decline in California's solar demand in FY24, Mandloi expects battery storage growth to mitigate solar volume declines. NOVA's Net Earning Assets are projected to grow significantly from FY23 through FY25. NOVA shares dropped 4.18% to $10.54.

November 21, 2023 | 8:22 pm
News sentiment analysis
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POSITIVE IMPACT
Mizuho Securities analyst Maheep Mandloi is bullish on Sunnova Energy, initiating coverage with a Buy rating and a $20 price target, expecting the company to outperform in market share growth, customer additions, and increasing unlevered IRRs.
The positive outlook from the analyst, including the Buy rating and $20 price target, suggests a bullish sentiment that could influence investor perception and drive short-term interest in NOVA. The detailed growth projections and strategic advantages outlined by the analyst are likely to be viewed favorably by the market. However, the current price action shows a decline, which may be due to broader market conditions or short-term reactions that could stabilize over time.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100