JPMorgan downgrades Sunnova on cash generation miss

JPMorgan downgraded Sunnova Energy (NOVA) to Neutral from Overweight without a price target The stock in morning trading is down 56%, or 93c, to 72c. Sunnova reported Q4 cash generation below guidance owing to lower volume, timing of investment tax credit transfers, and a portion of tax equity funding in December being classified as restricted, the analyst tells investors in a research note. JPMorgan points out Sunnova announced substantial doubt regarding its ability to remain a going concern, primarily owing to uncertainty regarding the impact of refinancing 2026 corporate debt maturities. While the company does still have some time to show improved cash generation execution, “the path could prove more difficult than previously anticipated,” contends JPMorgan. It downgraded the shares until visibility improves.