UPDATE: Wells Fargo Starts Sunnova (NOVA) at Equal Weight

(Updated - June 29, 2022 6:37 AM EDT)

Wells Fargo analyst Praneeth Satish initiates coverage on Sunnova (NYSE: NOVA) with a Equal Weight rating and a price target of $22.00.

The analyst comments "We’re initiating coverage of NOVA with an Equal Weight rating and a price target of $22/share. Sunnova is one of the largest residential solar providers in the U.S. The company sells solar systems primarily under a lease/PPA and loan structure, which results in no upfront costs for the customer and ~20% monthly savings versus a traditional utility bill. This model provides NOVA with a stable base of recurring revenue, protecting downside. We are positive on the long-term prospects for residential solar given an expansive runway for growth (only 4% penetration) and increased pricing power as utility rates increase at accelerated rate. However, this is offset in the near term by rising interest rates, sensitivity to an economic slowdown/recession, NEM 3.0 uncertainty, and the possibility of ITC expiration."

For an analyst ratings summary and ratings history on Sunnova click here. For more ratings news on Sunnova click here.

Shares of Sunnova closed at $18.68 yesterday.

You May Also Be Interested In

• TD Cowen Resumes EQT Corp. (EQT) at Hold
• Prysmian SpA (PRY:IM) (PRYMY) PT Raised to EUR53 at HSBC
• Wells Fargo on Super Micro Computer (SMCI): 'No Positive Preannouncement