BMO Capital raises Sunrun stock price target to $10 from $8, maintains Underperform

Published 07/08/2025, 13:52
BMO Capital raises Sunrun stock price target to $10 from $8, maintains Underperform

Investing.com - BMO Capital has raised its price target on Sunrun (NASDAQ:RUN) to $10 per share from $8 while maintaining an Underperform rating on the stock. Currently trading at $9.07, Sunrun’s stock sits between analysts’ targets ranging from $7 to $21, with InvestingPro data showing the company’s overall financial health score as "Weak."

The price target adjustment follows Sunrun’s second-quarter earnings report, which showed strong performance across most key performance indicators, including subscriber value and net value creation, though quarterly cash generation missed expectations.

BMO Capital analyst Ameet Thakkar noted that investor enthusiasm appears to be driven primarily by Sunrun’s update on its safe harbor strategy, where management demonstrated a path to safe harbor current volume run rate of installations through 2030.

Despite a recent pullback, Sunrun shares have gained 28% over the last three months, according to the research note.

BMO Capital maintains its Underperform rating on Sunrun while awaiting clarity on potential changes to safe harbor rules from the U.S. Treasury.

In other recent news, Sunrun has reported its second-quarter 2025 results, showcasing significant achievements in both solar and storage segments. The company exceeded expectations with installations of 227.2 megawatts and battery storage installations of 391.5 megawatt-hours, surpassing Wolfe Research’s estimates. Sunrun’s aggregate subscriber value also exceeded expectations, reaching $1,553 million. Despite strong volume growth, the company reported $27 million in cash generation for the quarter, slightly missing its guidance but marking its fifth consecutive quarter of positive cash flow. Goldman Sachs reiterated its Buy rating with a $15.00 price target, acknowledging the company’s strong performance but noting a miss in cash generation guidance.

Oppenheimer raised its price target for Sunrun to $21.00, highlighting operational gains, including higher value capture per customer and reduced costs. UBS also reiterated its Buy rating with a $15.00 price target, emphasizing the company’s strategic shift towards becoming a "storage first" entity. However, GLJ Research maintained its Sell rating, citing potential risks related to upcoming Treasury guidance and retroactive policy changes. These developments indicate a mixed outlook for Sunrun, with varied analyst perspectives reflecting differing assessments of future risks and opportunities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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