Sunnova Energy International (NYSE:NOVA) stock is on the move Monday after the residential solar company got new analyst coverage.
That coverage comes from Morgan Stanley analyst Andrew Percoco and includes a price target of $35 per share. That represents potential 124.1% upside compared to the stock’s closing price on Friday. For comparison, the analyst consensus price target for NOVA stock is $35.19 per share.
To go along with that price target, the Morgan Stanley analyst initiated coverage of NOVA stock with an “overweight” rating. To put that in perspective, the consensus rating for NOVA is a “moderate buy” based on 23 analyst opinions.
What’s Behind the Bullish NOVA Stock Price Prediction?
Percoco said the following in a note to clients obtained by CNBC:
“We like NOVA’s exposure to a vastly under-penetrated market, with strong long-term growth prospects and a growing product and service offering, at a discount valuation.”
Percoco specifically points to Sunnova’s suite of products, such as its solar panels, energy storage, electric vehicle (EV) charging and other products. These allow customers to move more fully off-grid in a way that the Morgan Stanley analyst believes will grow in popularity.
Following that new coverage, some 1.8 million shares have changed hands. To put that in perspective, the company’s daily average trading volume is roughly 3.9 million shares.
NOVA stock is down 1.6% as of Monday morning. The solar power company’s stock is also down 12.4% since the start of the year.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.