Goldman Sachs reiterates Buy rating on Sunrun stock amid strong Q2 results

Published 07/08/2025, 12:16
Goldman Sachs reiterates Buy rating on Sunrun stock amid strong Q2 results

Investing.com - Goldman Sachs has reiterated its Buy rating and $15.00 price target on Sunrun (NASDAQ:RUN) following the company’s second-quarter 2025 results. Currently trading at $9.07, the stock shows potential upside according to InvestingPro analysis, though the company’s overall financial health score indicates weakness.

The solar provider reported stronger-than-expected volume growth in both solar and storage segments during the quarter, according to Goldman Sachs. Despite this growth, Sunrun’s second-quarter cash generation missed guidance, and the company maintained its full-year cash generation range of $200 million to $500 million. InvestingPro data reveals the company operates with a significant debt burden of $14.1 billion and has been quickly burning through cash, which may explain the cash generation challenges.

Sunrun significantly raised its contracted net value creation guidance by 64% to $1.0 billion-$1.3 billion, driven by strong increases in subscriber value and improvements in creation costs. The company expects to begin construction on enough projects by mid-August to support installations through 2030, coinciding with the upcoming Executive Order on safe harboring guidance.

The solar provider currently has funding to support approximately 325MW+ of projects and anticipates securing additional funding in the near term. This positions the company to maintain operations as the 25D tax credits for consumers are set to expire at the end of this year.

Goldman Sachs believes Sunrun is well-positioned to drive continued strong results and capture market share within the third-party owned market following the expiration of consumer tax credits. While InvestingPro analysis shows net income is expected to grow this year, subscribers can access 15+ additional ProTips and comprehensive financial metrics to make more informed investment decisions.

In other recent news, Sunrun reported its second-quarter 2025 financial results, showcasing a notable earnings per share (EPS) surprise with an EPS of $1.07, significantly surpassing the forecast of -$0.1064. The company’s revenue also exceeded expectations, reaching $569.3 million compared to the anticipated $558.15 million. Sunrun’s installations for the quarter were impressive, with 227.2 megawatts installed, surpassing both Wolfe Research’s estimate of 205.3 megawatts and consensus expectations of 203 megawatts. The company also reported strong battery storage installations at 391.5 megawatt-hours, driven by a 69% attach rate, an increase from the previous quarter’s 66%.

Further developments include a price target increase from Oppenheimer to $21.00, maintaining an Outperform rating, following Sunrun’s operational gains and cost reductions. UBS reiterated its Buy rating and a $15.00 price target, highlighting Sunrun’s fifth consecutive quarter of positive cash flow and strategic focus on storage growth. JPMorgan also raised its price target to $20.00, citing strong storage growth, increased installation volumes, and reduced operating costs as key factors for the company’s robust performance. These updates reflect Sunrun’s strategic advancements and operational efficiencies in the solar energy sector.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.