Sunnova Energy assumed with Neutral from Buy at Citi

Citi analyst Vikram Bagri downgraded Sunnova Energy to Neutral from Buy with a price target of $25, down from $26, after assuming coverage of the name. The analyst sees a tough fundamental landscape for residential solar companies and prefers the utility-scale names. Citi’s economic team expects a second rate hike in November, which will further increase the cost of capital for installers and may coincide with California demand bottoming, the analyst tells investors in a research note.