Sunnova Energy downgraded to Neutral from Buy at UBS

UBS downgraded Sunnova Energy (NOVA) to Neutral from Buy with a price target of 65c, down from $5. The company’s ability to drive cash generation is facing “significant headwinds,” having posted only $2M of unrestricted cash in Q4 compared to UBS’s $100M expectation, the analyst tells investors in a research note. The firm anticipates Sunnova’s cash generation could be further negatively impacted by the addition of a going concern notice, potentially limiting the company’s ability to finance new customer origination. This dynamic increases risk to executing on refinancing Sunnova’s 2026 corporate debt maturities, contends UBS.