Benzinga | Jul 7, 2021 10:23AM EDT

Raymond James Upgrades Sunnova Energy To Strong Buy, Still Sees 28% Upside

* Raymond James analyst Pavel Molchanov upgraded Sunnova Energy International Inc (NYSE:NOVA) to Strong Buy from Outperform.

* Molchanov reiterated the price target of $50, citing the stock's "irrational" underperformance. The price target still signifies a 27.6% upside.

* Sunnova's cost of capital is well below the 6% "rule of thumb" used in the solar leasing space. It has been getting better financing terms in 2021 than one and two years ago, Molchanov's research note stated.

* Price action: NOVA shares traded higher by 1.90% at $39.93 in the market session on the last check Wednesday.