© Reuters. Sunrun (RUN) and Sunnova Power (NOVA) Downgraded by way of Piper Sandler on Decrease Self assurance
By way of Sam Boughedda
A Piper Sandler analyst downgraded Sunnova Power Global Inc . (NYSE:) and Sunrun (NASDAQ:) to Impartial from Obese on Tuesday.
The analyst minimize Sunnova’s value goal to $23 from $27 in line with percentage and Sunrun’s value goal to $29 from $35, telling buyers in a be aware that heading into subsequent 12 months, they imagine sun may end up extra resilient.
“With BBB now two times deceased, we imagine investor center of attention will go back to comparing our protection underneath a recessionary lens (our macro crew believes recession starts throughout 2H’22). Extensively, undertaking lead occasions throughout the sector counsel much less threat for ’22 expectancies with extra threat manifesting subsequent 12 months,” mentioned the analyst. “Getting into ’23, we imagine US Software-scale sun may end up rather extra resilient, wait for US resi sun expansion deceleration, and stay positive on Europe’s call for for non-Russian power provide.”
Alternatively, the analyst added that throughout the unsure financial setting, they’re biased towards steadiness sheet power, corporations with doable for favorable long-term income revisions, and/or loose money drift technology.
“We downgrade RUN+NOVA to Impartial from OW as we’ve decrease self belief surrounding their levered money technology trajectory and combat with catalysts able to propelling the shares meaningfully upper inside a risk-off setting.”