Barclays maintains Sunrun stock rating at Equalweight with $15 target

Published 03/09/2025, 18:40
Barclays maintains Sunrun stock rating at Equalweight with $15 target

Investing.com - Barclays has reiterated its Equalweight rating and $15.00 price target on Sunrun (NASDAQ:RUN), currently trading at $16.39, highlighting the solar company’s enhanced clarity and strategic momentum following the Ongoing Better Building Better (OBBB) process. According to InvestingPro data, the stock has shown strong momentum with a 158% return over the past six months.

The investment bank noted that Sunrun’s storage-first approach, robust safe harbor positioning through 2029, and differentiated scale provide a strong foundation for navigating market transitions and regulatory shifts. With a market capitalization of $3.76 billion, Sunrun operates with significant leverage, showing a debt-to-equity ratio of 4.84. Barclays emphasized that the final budget bill outcome provides a favorable runway for Sunrun’s solar Investment Tax Credit (ITC) and storage strategy.

With the 25D credit expiring, Sunrun anticipates a migration from loans to leases, particularly toward third-party ownership (TPO) providers. The company maintains a focus on its core lease offerings and long-term customer relationships, with storage attachment rates reaching 70% as part of its multi-product strategy.

Sunrun has delivered five consecutive quarters of positive cash generation and reaffirmed its guidance for the year. While the company maintains a current ratio of 1.41, InvestingPro analysis reveals several key challenges, including rapid cash burn and potential difficulties with interest payments. The company outlined a resilient framework for future cash generation, supported by strong tax equity relationships and a proven financing model.

Looking beyond 2032, Sunrun expects its business model to remain economically viable even without tax incentives, citing long-term trends in energy pricing and reliability, though management noted that subsidies are common across the energy sector and anticipates some form of tax credit will likely persist. With revenue growth of 3.27% and analysts projecting profitability this year, investors seeking deeper insights can access comprehensive analysis and 14 additional ProTips through InvestingPro’s detailed research report.

In other recent news, Sunrun has seen several positive developments that could interest investors. The company’s second-quarter 2025 earnings report revealed revenue of $569.3 million, marking an 8.7% increase year-over-year and surpassing consensus estimates of $559 million. This financial performance has led to a series of analyst upgrades and increased price targets. RBC Capital upgraded Sunrun’s stock rating from Sector Perform to Outperform, citing increased certainty about long-term opportunities due to treasury guidance clarification. GLJ Research also upgraded the stock from Sell to Hold, attributing the decision to favorable U.S. Treasury guidance for the residential solar sector. Additionally, Wells Fargo raised its price target for Sunrun to $14.00, maintaining an Overweight rating, while Freedom Broker increased its target to $14.50, keeping a Hold rating. These upgrades reflect a more optimistic outlook for Sunrun in light of recent developments.

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