Sunnova Energy price target lowered to $9 from $10 at Barclays

Barclays analyst Christine Cho lowered the firm’s price target on Sunnova Energy (NOVA) to $9 from $10 and keeps an Overweight rating on the shares as part of a Q4 earnings preview. The firm does not expect changes to the company’s cash generation outlook, but does anticipate more discussion around the mitigation measures it can both do in the face of potential changes to the Inflation Reduction Act. Given the uncertainty around the regulatory backdrop, the questions around Sunnova and its upcoming maturities have re-emerged, the analyst tells investors in a research note. Barclays reduced cash generation estimates for the company. Given the California fires, the uncertain regulatory outlook, the potential need to safe harbor and a more focused approach to margin and cash generation, it reduced volumes and capital expenditure estimates.