Sunnova Energy price target raised to $13 from $11 at Morgan Stanley

Morgan Stanley raised the firm’s price target on Sunnova Energy to $13 from $11 and keeps an Equal Weight rating on the shares. The analyst believes the outlook for distributed solar is improving but recommends investors “stay nimble” and position in companies with scale, a proven operating and funding model, and de-risked earnings outlook. Sunrun remains the firm’s preferred play in distributed solar. Morgan Stanley is getting more positive on residential solar installers. The setup for residential solar installers is improving, catalyzed by improved subsidy support, rising utility power prices, and potentially lower interest rates, the firm contends.