Sunnova Energy downgraded to Neutral at Janney on liquidity concerns

As previously reported, Janney Montgomery Scott downgraded Sunnova Energy (NOVA) to Neutral from Buy with a $1 fair value estimate as the firm now values the company at a discount to its loan book and contracted customer value until there is concrete resolution to Sunnova’s liquidity position and “going concern” language. A resolution, which could involve selling its about $4B loan book or some of its net contracted assets, would “likely spark a strong rally in the shares,” but scenarios are hypothetical at this point and the firm recommends investors stay neutral on the shares, the analyst added.