Analyst Jeff Osborne of TD Cowen maintained a Hold rating on Sunnova Energy International (NOVA – Research Report), reducing the price target to $0.20.
Jeff Osborne has given his Hold rating due to a combination of factors surrounding Sunnova Energy International’s financial situation. The company is currently undergoing restructuring negotiations with creditors, which introduces a level of uncertainty about whether it will pursue an out-of-court restructuring or file for bankruptcy. This uncertainty is compounded by the company’s reliance on tax credits, which are at risk of reform or repeal, making lenders hesitant to provide additional funding.
Furthermore, Sunnova’s financial health is strained, as evidenced by its significant negative working capital and substantial accounts payable. The company has halted new originations since its going concern warning, and its cash conservation measures are impacting operations. With a lowered price target reflecting these challenges, Osborne’s Hold rating suggests a cautious approach, awaiting more clarity on the company’s restructuring efforts and financial stability.
Osborne covers the Technology sector, focusing on stocks such as Enphase Energy, First Solar, and Itron. According to TipRanks, Osborne has an average return of -2.1% and a 35.96% success rate on recommended stocks.
In another report released yesterday, RBC Capital also maintained a Hold rating on the stock with a $0.75 price target.