© Reuters. Sunnova Power (NOVA) minimize at BMO Capital, ‘seemingly upcoming financings could weigh on the inventory’
Sunnova Power Worldwide Inc. (NYSE:) was downgraded to Market Carry out from Outperform at BMO Capital Markets on Friday, with the agency additionally reducing the inventory value goal to $25 from $27.
BMO analysts instructed traders in a be aware that they’ve determined to downgrade the inventory, following its latest outperformance. NOVA shares are up greater than 20% within the final month.
“NOVA has been our most well-liked thought amongst residential photo voltaic installers given its potential to proceed to drive enticing buyer progress throughout the rate of interest cycle whereas sustaining contract margins,” the analysts wrote. “NOVA additionally has considerably much less publicity than friends to CA NEM 3.0 as progress slows within the state.”
“Nonetheless, we see these positives more and more mirrored in its inventory value relative to friends as NOVA shares have outperformed its friends by ~35-60% and the TAN and S&P by 27% and seven%, respectively, ytd.”
The analysts additionally went on to state that the influence of seller progress could wane over time, whereas they’re additionally cautious that seemingly upcoming financings could weigh on the inventory.
