These 5 Renewable Energy Stocks Can Benefit as Europe Braces for Harsh Winter

4. Sunnova Energy International Inc. (NYSE:NOVA)

Number of Hedge Fund Holders: 25

Sunnova Energy International Inc. (NYSE:NOVA) is a Texas-based company that provides residential solar energy systems in the United States. The company has over 100 industry partners in more than 20 countries around the world. For Europe, Latin America, Southeast Asia, and other emerging photovoltaic markets, the yearly solar delivery has exceeded 1 GW. It is one of the renewable energy stocks that stand to gain as Europe braces for harsh winter. 

JPMorgan analyst Mark Strouse on August 8 raised the price target on Sunnova Energy International Inc. (NYSE:NOVA) to $54 from $43 and reaffirmed an Overweight rating on the shares. The analyst believes Sunnova Energy International Inc. (NYSE:NOVA) can benefit from the Inflation Reduction Act, noting that renewables have more upside and companies with domestic manufacturing will be the most immediate beneficiaries.

Among the hedge funds tracked by Insider Monkey, 25 funds were bullish on Sunnova Energy International Inc. (NYSE:NOVA) at the end of Q2 2022, compared to 26 funds in the earlier quarter. Electron Capital Partners is a notable shareholder of the company, with over 3 million shares worth $56.5 million.

Here is what the Clearbridge Investments Small Cap Strategy had to say about Sunnova Energy International Inc. (NYSE:NOVA) in its Q1 2022 investor letter:

“We initiated a new position in Sunnova (NYSE:NOVA), in the energy sector. Sunnova is a residential solar and energy storage company that enables adoption through a network of installers with options for financing, service and broader home energy management. Rising interest rates and solar energy supply constraints weighed on the stock’s performance in the fourth quarter of 2021 but created a compelling valuation opportunity to buy this business when the market was embedding low growth expectations. We believe Sunnova will deliver value accretive growth for a much longer time, with its downside limited by the long-term, fixed-rate, high- quality contracts it has with customers.”