Sunnova Energy price target lowered to $1 from $4.50 at Piper Sandler

Piper Sandler analyst Kashy Harrison lowered the firm’s price target on Sunnova Energy (NOVA) to $1 from $4.50 and keeps a Neutral rating on the shares. Investor concerns surrounding Sunnova’s liquidity had been building in recent months and were confirmed by the going concern issuance that drove severe equity weakness, the firm says. The company attributed challenges generating cash to capital markets uncertainty stemming from the elections and insolvencies within the sector. Sunnova has secured some funding and adjusted dealer terms that the company believes buys time to address the looming maturities, Piper notes. However, concerns surrounding its viability could impact dealer confidence thereby potentially driving an exodus toward better capitalized private peers, which could exacerbate cash issues.