Clean energy stock Sunnova could return 90% in 12 months: Morgan Stanley

July 21, 2023 04:05 AM AEST | By Invezz

Clean energy stock Sunnova could return 90% in 12 months: Morgan Stanley — Image source: Invezz

Sunnova shares should be worth $42

On Thursday, Maheshwari recommended buying the clean energy stock and said it had upside to $42 – a 90% premium on its current price.

The analyst is convinced that Sunnova shares will benefit as solar power continues to get cheaper. His research note reads:

As electricity consumption grows 10% faster than GDP, we estimate demand for clean power will double to account for nearly half of the world’s electricity requirements by 2030.

Sunnova will report its Q2 results next week. Consensus is for it to lose 42 cents a share versus 32 cents per share a year ago.

Inflation Reduction Act could help Sunnova

Note that the Houston-headquartered firm could benefit from Biden’s Inflation Reduction Act as well that includes a 10-year extension on the solar tax credit.

Maheshwari likes Sunnova shares because he expects solar and onshore wind to be about 35% cheaper on average versus fossil fuels by the end of this decade.

With increased competitiveness over fossil fuels, clean power will metamorphose the electricity landscape, overtaking fossil-based generation by 2030.

Strong demand for the residential solar systems will help this clean energy stock hit new milestones over the next twelve months, he concluded. The Morgan Stanley analyst also recommended buying New Fortress Energy Inc today in which he sees upside to $50 per share.

The post Clean energy stock Sunnova could return 90% in 12 months: Morgan Stanley appeared first on Invezz.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.