Sunnova Energy attractive on risk-reward basis, says Roth MKM

Roth MKM analyst Philip Shen keeps a Buy rating and $20 price target on Sunnova Energy ahead of its Q3 results. The company should continue to execute its strategy of stacking cash to pay down debt, though while its slowing growth is by design, the primary risk for Sunnova is the permanent loss of more dealers than expected due to stricter payment terms and mandating domestic content, the analyst tells investors in a research note. Roth MKM added however that the stock is down 50% since mid-September, and the current level represents an attractive risk/reward.