Sunnova Energy upgraded to Buy at Janney following ‘pronounced’ selloff

As previously reported, Janney Montgomery Scott upgraded Sunnova Energy to Buy from Neutral with an unchanged fair value estimate of $12. While the firm is not adjusting its overall thesis on the growth and margin outlook, it notes that the several weeks of significant trading weakness following the company’s Q4 report have been “generally more acute and pronounced than what we had originally expected in February.” The firm notes that its 2024 and 2025 estimates are below current Street estimates and company guidance, but it says the magnitude of the selloff since earnings has lead it to re-evaluate its rating and view the risk/reward at the current valuation as one that “warrants buying shares.”