Sunnova Energy price target raised to $10 from $9 at BMO Capital

BMO Capital analyst Ameet Thakkar raised the firm’s price target on Sunnova Energy to $10 from $9 and keeps a Market Perform rating on the shares as part of a broader research note previewing Q3 results in the Energy Transition & Infrastructure sector. The earnings season is coinciding with U.S. elections, and investors should be cautious with respect to adding to positions or putting new capital to work but rather should focus on “relative value”, the analyst tells investors in a research note. There is limited probability of a full rollback of the Inflation Reduction Act, but policy uncertainty will emerge in case of a Trump win and Republican gains in Senate/House, the firm added. BMO further notes that while the company has outsized positive leverage to falling interest rates and share prices performed well in Q3, the outlook for more rate cuts is less clear.