Sunnova (NSDAQ:NOVA) - Strong BUY according to analysts

NOVA

Sunnova Energy International (NOVA) offers residential solar and energy storage services in the US. The business describes itself as a pioneer in energy-as-a-service (EaaS), providing long-term leases to clients. Solar panels, battery storage, e-charging stations, generators, and grid services are among its product offerings. It does not provide its own technology, but rather Tesla’s Powerwall, Generac Holdings’ PWRCell battery storage systems, and ChargePoint’s electric vehicle chargers (CHPT). By the end of next year, there will be 400,000 customers, up from the current total of slightly under 247,000. The corporation claims that it can currently service 106 million households.

Citi analysts reiterated a $26 price target on December 15th (Buy). Consumer power prices are on the rise, and support for the recent Inflation Reduction Act, which extended the 30% ITC tax credit for new solar purchases through 2032, should keep things moving in the right direction. By 2025, services per client are anticipated to double due to expanding service options.

Most people who own electric cars also charge them at home. After the price decline, the expert claims that the risk-reward ratio is good at the current level. Sales increased by + 116% in the third quarter compared to Q3-2021, to USD 149.36 million. Sales of solar energy systems and the purchase of SunStreet done last year also contributed to the growth. The loss of -0.54 USD per share was far greater than the -0.22 USD forecast.

Analysts predict that revenue will increase significantly from $503.43 million this year to $1.16 billion by 2025. Due to the lack of profitability thus far, the stock is still considered speculative. It is becoming more challenging to find debt financing for leased equipment due to rising interest rates. Given the sector’s strength, the situation is intriguing for short-term trading strategies.