Sunnova Energy International shares (NYSE:), have not performed well in this year’s market, falling 17.4% during the past three-months.

Because this stock contains relevant catalysts, the downturn will soon end. Therefore, I believe this stock is a good investment. TipRanks has NOVA stock charts.

Sunnova is an industry leader in residential solar and energy storage. Sunnova’s Houston headquarters, Texas is where the company manages its business operations and sales network. This allows it to service customers located within the U.S.

Q2 2021

The company provided residential solar services for a greater number of customers in the second quarter 2021. Total revenue was $66.56 millions. The figure is a 55.6% increase year-over-year and surpasses analysts’ estimates by $7.4 Million.

Although important, growth was not sufficient to surpass analysts’ expectations for EPS.

Analysts estimated that $0.26 was the actual net loss for this company. The net loss at $0.42 per share was more than $0.26.

The Industry Outlook and Recent Acquisitions. Guidance

Joe Biden has pledged to address climate change. Infrastructure Investment and Jobs Act has a multibillion-dollar section that can be used to fund clean energy projects. This budget, if approved by the Senate, will provide a tremendous boost for the photovoltaic sector.

Sunnova Energy International is likely to reap the benefits of incentivizations for going green, such as adoption solar panels. The strong demand will result from related services.

The team of professionals that attracted 12,700 customers in three months is helping to grow the customer base.

Acquisition of residential solar platforms Lennar Corporation (NYSE 🙂 attracted 33,500 more customers. Sunnova was named the exclusive provider for America’s largest homebuilder.

At the close of quarter, the company had $630million in cash and equivalents to allow it to continue financing business growth organically and via strategic acquisitions.

Sunnova Energy is looking forward to 2021 full. It expects Sunnova Energy to add 55,000-58,000 new customers and an adjusted operating cashflow of $35M to $45M.

Wall Street’s Take

11 Wall Street analysts gave NOVA a 12 month price target in the past 3 months. Sunnova has a price target average of $51.82, which implies 62.2% upside. Based on 9 Buys, 2 Holds, and zero Sell ratings, the analyst consensus rating is Strong Buy.

Summary

Sunnova has been a weak performer over the past year. Some catalysts are however promising for the future. These catalysts could lead to a substantial share price rebound if they are successful.

Disclosure: Alberto Abaterusso didn’t hold any position at the time this article was published.

Disclaimer: This article is solely the author’s opinion and does not reflect the opinions of TipRanks and its affiliates. It should only be used for informational purposes. TipRanks cannot guarantee the reliability, completeness or accuracy of any information. This article is not intended to be interpreted as an offer or recommendation for the purchase or sale of securities. The article does not provide legal, financial, investment, or professional advice. It also doesn’t take into consideration the individual needs or requirements. Neither is the information contained in it a complete or comprehensive statement about the subject or issues discussed. TipRanks, its affiliates, disclaim any liability or responsibility in relation to the content. You are responsible for your actions based upon the articles. TipRanks’ or any affiliates does not endorse this article or make it a recommendation. Performance in the past is no guarantee of future performance, price or results.