Sunrun may greater than make up for final yr’s pullback going ahead, in response to UBS. The financial institution upgraded shares of the clear power inventory to purchase from impartial. Analyst Jon Windham additionally lifted his value goal to $17 from $14. The up to date value goal implies upside of round 58%. Shares of Sunrun have popped 16% already this yr after tumbling 53% in 2024. RUN 1Y mountain RUN 1Y chart “RUN appears to be like enticing given the shares buying and selling close to all-time low multiples regardless of rising constructive elementary traits,” Windham wrote, including that Sunrun is rising because the “clear market chief in a stabilizing residential photo voltaic market.” Investor uncertainty in the direction of the funding tax credit score underneath a second Trump administration additionally contributed to Sunrun’s sell-off final yr. However the analyst believes that these fears are overblown. “The important thing catalyst for shares is the destiny of the renewable tax credit in funds reconciliation, probably as quickly as March-2025. We see revisions to tax credit score expiry dates as extra doubtless than a full repeal, and can be constructive for sector valuations in our view,” he wrote. In the meantime, Sunrun’s market share in California has already almost doubled to 22% over the previous yr, offering a possible roadmap for different states in search of to broaden their renewable capacities, in response to the analyst. Shares rose greater than 4% following the improve. Analysts usually are cut up on the inventory. Of the 27 who cowl it, 14 have a purchase or sturdy purchase score on it, in response to LSEG. One other 13 charge it as a maintain of underperform.
