Tuesday’s analyst calls: Solar stock downgraded, video game maker to surge going forward

Posted By: EN Todayon: April 23, 2024In: Renewable Energy News

(This is CNBC Pro’s live coverage of Tuesday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) A solar energy company and a video game maker were highlighted by analysts Tuesday. KeyBanc downgraded Sunnova to sector weight from overweight. Meanwhile, JPMorgan upgraded Roblox to overweight from neutral, and its new price target implies upside of more than 35%. Check out the latest calls and chatter below. All times ET. 5:43 a.m.: KeyBanc downgrades beaten-down solar stock Sunnova Energy Heading into first-quarter earnings, KeyBanc Capital Markets is cautious on residential solar names, particularly Sunnova Energy . Analyst Sophie Karp downgraded the Texas-based residential and commercial solar energy company to sector weight from overweight and removed her price target on the stock. Sunnova shares have plunged nearly 75% this year, punished by a higher-for-longer interest rate environment that has been challenging for solar companies’ project financing and cash flows. “The overall residential solar landscape in the U.S. remains challenging due to the combination of lower energy prices and elevated financing costs,” Karp wrote in a Monday note, saying that a lack of encouraging data from the industry suggests that recovery remains elusive. “NOVA specifically is under pressure to demonstrate positive q/q cash movement and to define its capital allocation strategy going forward.” Karp reiterated her sector weight rating on solar peers Sunrun, SolarEdge Technologies and Enphase Energy, meanwhile. — Pia Singh 5:43 a.m.: JPMorgan upgrades Roblox The sell-off in Roblox shares has created a big buying opportunity, according to JPMorgan. The bank upgraded the video game company to overweight from neutral. It also raised its price target to $48 from $41, implying a 37% rally over the next 12 months. “RBLX shares have been volatile since the company’s direct listing in 2021, in many ways reflecting investor enthusiasm — and subsequent skepticism — around the durability of companies that saw usage spikes during the pandemic,” analyst Cory Carpenter wrote. This year alone, shares are down more than 23% after a 60% rally in 2023. That pullback “presents a compelling entry point for a company growing bookings ~20%+, exiting a heavy investment cycle, and ramping two new revenue streams in advertising (2H24) & commerce (2025),” Carpenter said. Roblox shares popped 3% in the premarket following the upgrade. RBLX 1D mountain Roblox rises — Fred Imbert