RBC Capital provided its outlook on Sunnova Energy International Inc. (NYSE:NOVA) ahead of Q1 earnings, which are scheduled to be reported tomorrow after the market close.

The analysts lowered their Q1 estimates on seasonality but largely maintained their full-year 2023 estimates. They now forecast Q1 adjusted EBITDA of $12 million ($24 million prior), principal income of $28 million ($34 million prior) and interest income of $17 million ($25 million prior).

According to the analysts, Q1 is seasonally slower given lower solar production and SRECs as well as higher installations. For the full year 2023, they now forecast adjusted EBITDA + P&I of $519 million and for 2024 they forecast adjusted EBITDA + P&I of $782 million.

The analysts reiterated their Outperform rating and $31 price target on the company’s shares.