Sunnova Energy price target raised to $10 from $9 at Truist

Truist analyst Jordan Levy raised the firm’s price target on Sunnova Energy to $10 from $9 and keeps a Buy rating on the shares ahead of its Q2 results. Despite the bounce from May lows, the stock is still down over 50% on a y/y basis as higher-for-longer rates continue to impact residential solar demand, the analyst tells investors in a research note. The current downturn will be the catalyst needed to usher in a fundamental shift in the residential installer model from “growth at all costs to a focus on cash generation”, where the firm sees “meaningful incremental tailwinds” from the Inflation Reduction Act Investment Tax Credit adders that are not fully reflected in the current cash generation guide, the firm added.