Sunnova (NOVA) PT Raised to $8 at Piper Sandler

Piper Sandler analyst Kashy Harrison raised the price target on Sunnova (NYSE: NOVA) to $8.00 (from $7.00) while maintaining a Neutral rating.

The analyst commented, "We update our model following NOVA's 2Q earnings, raise our PT to $8.00/sh (levered DCF methodology unchanged), and reiterate our Neutral rating. Investor focus surrounded 2Q'24 unrestricted cash and the updated liquidity forecast through 2026. NOVA's unrestricted cash balance improved during 2Q'24 by $22M due to $52M of accessory loan sales. YTD unrestricted cash trends have improved meaningfully y/y (-$12M in 1H'24 ex-asset sales vs. -$173M in 1H'23); however, more progress is required. On that note, NOVA expects domestic content to drive $60M of unrestricted cash generation in 2H'24 and $350M in '25. If NOVA successfully executes on its forward strategy in the coming quarters (with a potential tailwind from declining benchmark rates depending on evolution of credit spreads) then there could be a window for the company to refinance some maturities before they go current in 3Q'25."

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