** 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
(Reporting by Pooja Menon in Bengaluru)
((Pooja.Menon@thomsonreuters.com;))
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.