Sunnova Energy price target lowered to $35 from $58 at Roth MKM

Roth MKM analyst Philip Shen lowered the firm’s price target on Sunnova Energy to $35 from $58 to reflect the “overall negative sentiment environment” but keeps a Buy rating on the shares. The firm remains bullish on the stock following its 50% decline from July highs, noting that with interest rates going lower, pricing remaining elevated, and equipment prices decreasing, it sees the “value wedge” expanding. Roth MKM further notes that Sunnova also continues to increase levered cash flows from its existing asset base, with the company expecting $125M per year year for the next 10 years beginning in 2024, and moving to $185M per year for the following years thereafter.