Piper downgrades Sunnova on lack of conviction in story

Piper Sandler downgraded Sunnova Energy to Neutral from Overweight with a price target of $4.50, down from $9. The analyst is less certain on consistent positive cash generation beyond 2024 for the company. To generate positive unrestricted cash in coming years, Sunnova’s non-recourse capital raises must exceed engineering, procurement, and construction capital at the customer level, the analyst tells investors in a research note. “There are too many moving pieces for us to have conviction on the story,” writes Piper. It reduced its cash expectations to account for changes in Sunnova’s restricted cash.