Piper Sandler dished out bear notes to Sunrun and Sunnova Energy today
Just a few weeks after Goldman Sachs' bullish coverage solar sector, Piper Sandler today weighed in on two stocks with bear notes after U.S. President Joe Biden's "Build Back Better" program failed to hurdle resistance in Congress. The firm downgraded Sunrun Inc (NASDAQ:RUN) and Sunnova Energy International Inc (NYSE:NOVA) to "neutral" from "overweight," and also noted risky cash flow prospects as economists continue to worry over a potential recession.
In addition, Piper Sandler cut its price target on RUN and NOVA to $29 and $23, respectively. Coming into today, analysts were overwhelmingly bullish toward both equities, with 11 of 13 calling Sunrun stock a "buy" or better, while 12 of 14 held the same sentiment on Sunnova Energy stock.
In response to the downgrade, Sunrun stock was last seen 2.6% lower to trade at $23.70. The 150-day moving average has weighed on the equity all year, and most recently stopped an early July rally attempt near the $27.50 level. Year-to-date, RUN is down 29.1%.
Meanwhile, Sunnova Energy stock is down 1.6%, trading at $19.42 at last check. The security also faces resistance from its 150-day trendline, which has thwarted rallies multiple times in the last few months. Year-over-year, NOVA is down 40.6%.