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Investing.com - JPMorgan raised its price target on Sunrun (NASDAQ:RUN) stock to $16.00 from $13.00 on Tuesday, while maintaining an Overweight rating on the residential solar company. According to InvestingPro data, the stock, currently trading at $10.36, is slightly undervalued based on its Fair Value analysis.
The firm cited Sunrun’s leadership position in residential energy services, including solar, storage, EV charging, and home energy management, which it describes as an underpenetrated market.
JPMorgan expects this market to grow at a double-digit compound annual growth rate (CAGR) over the medium to long term, providing significant expansion opportunities for the company.
The investment bank noted that Sunrun has strong visibility into future revenue due to its long-term customer contracts, and that value per customer should improve as more services are adopted.
JPMorgan also believes Sunrun is positioned for market share gains due to favorable Investment Tax Credit ( ITC (NSE:ITC)) rules and the company’s leading scale in the residential solar sector.
In other recent news, Sunrun has experienced several noteworthy developments in the residential solar market. Barclays (LON:BARC) has maintained an Equalweight rating on Sunrun, projecting a contraction in the residential solar market by 20-25% in 2025. Despite this, Barclays anticipates significant growth in third-party ownership models, which could benefit Sunrun’s leasing business. UBS has raised its price target for Sunrun to $15.00, emphasizing the company’s strong position in the residential solar leasing market, especially in light of new legislative changes affecting tax credits. The recently signed budget bill terminates homeowner solar tax credits but maintains credits for leasing, potentially benefiting Sunrun. Jefferies upgraded Sunrun’s rating to Hold, acknowledging favorable legislative outcomes for third-party ownership companies like Sunrun, despite broader market challenges. Additionally, KeyBanc upgraded Sunrun to Sector Weight, citing regulatory developments that preserve key tax credits for solar leasing, along with market consolidation benefits. Finally, Citi analysts have noted positive momentum for Sunrun following the signing of the reconciliation bill, which has improved the legislative environment for residential solar companies.
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