BUZZ-Sunnova Energy down after Jefferies downgrades to 'hold', cuts PT

Shares of residential solar firm Sunnova Energy International NOVA.N fall 3.6% to $2.38

Jefferies downgrades the stock to "hold" from "buy" and cuts price target to $2 from $9

New price target represents a 18.7% downside to the stock's last close

Brokerage says softness in the residential solar market and unexpected tightening in tax equity markets in response to growing uncertainty on anything Inflation Reduction Act-related have weighed on NOVA

"We have increasing doubts over the company achieving the full $100 mln of cash generation in Q4 and believe 2025-2026 targets of $750 mln are at risk as well" - Jefferies

Brokerage says it no longer sees the priority as cash generation but rather addressing debt and cutting costs; expects NOVA to return to stronger cash generation in later years

12 of 24 brokerages rate the stock "buy" or higher, 11 "hold" and 1 "sell"; their median PT is $5.75 - data compiled by LSEG

Including session's moves, stock down 28.3% YTD