Jeff Osborne, an analyst from TD Cowen, maintained the Hold rating on Sunnova Energy International (NOVA – Research Report). The associated price target was lowered to $0.60.
Jeff Osborne has given his Hold rating due to a combination of factors affecting Sunnova Energy International. The company’s cash generation in the fourth quarter of 2024 fell significantly short of expectations, primarily due to a reduced appetite for tax equity and elevated interest rates. This shortfall has led to the removal of cash generation guidance for the years 2025 and 2026, as management shifts focus to addressing corporate debt maturities by mid-2025.
Additionally, liquidity concerns have been heightened, prompting the inclusion of ‘going concern’ language in the report. While the company has secured a $185 million non-recourse asset-based loan facility to aid dealer payments and is maintaining a disciplined approach by prioritizing margins over volume, these positives are overshadowed by the challenges. The market environment remains difficult, with increased competition leading to market share loss and uncertainty surrounding tax equity and debt markets following SunPower’s bankruptcy.
According to TipRanks, Osborne is a 3-star analyst with an average return of 0.9% and a 39.60% success rate. Osborne covers the Technology sector, focusing on stocks such as Sunrun, Sunnova Energy International, and NEXTracker, Inc. Class A.
In another report released yesterday, Capital One Financial also downgraded the stock to a Hold with a $3.00 price target.