Sunnova Energy price target lowered by $1 at Morgan Stanley, here’s why

Morgan Stanley analyst Andrew Percoco lowered the firm’s price target on Sunnova Energy to $24 from $25 and keeps an Overweight rating on the shares. After the substantial selloff in clean tech stocks in 2023, the firm thinks clean energy valuations could see meaningful improvement in 2024 if interest rates fall, as the firm’s economists and strategists predict. Companies that have demand visibility and profitable growth should outperform until rates and macro uncertainty subside, says the analyst, who adds in a preview note for the group that the firm doesn’t see an IRA repeal as likely, but anti-IRA rhetoric “could serve as an overhang for the sector.”