BMO downgrades this solar energy stock, says macro backdrop remains challenging

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BMO downgrades this solar energy stock, says macro backdrop remains challenging
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Analyst Ameet Thakkar lowered his rating on the stock to market perform from outperform.

Sunnova Energy has managed to outperform its peers despite tough macro conditions, but BMO thinks it's time for investors to trim their exposure to the stock. Analyst Ameet Thakkar lowered his rating on Sunnova to market perform from outperform. He also trimmed his price target on shares to $25 from $27. The new price target implies 10.7% upside from Thursday's close. The residential solar panel company has outperformed both the Invesco Solar ETF and the S & P 500 in 2023.

mountain Sunnova Energy shares "We remain constructive on NOVA and residential solar growth in the U.S. longer-term. That said, the macro backdrop for U.S. residential solar remains challenging," Thakkar wrote in a Friday note. He noted that although dealer growth has allowed Sunnova to add customers despite less overall demand for residential solar power, the impact from that could wane over time. "Dealer growth has been a key driver of success in a difficult environment.

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