Oppenheimer raises Sunrun stock price target to $21 on operational gains

Published 07/08/2025, 12:12
Oppenheimer raises Sunrun stock price target to $21 on operational gains

Investing.com - Oppenheimer raised its price target on Sunrun (NASDAQ:RUN) to $21.00 from $20.00 on Thursday, while maintaining an Outperform rating on the solar company’s stock. The new target represents significant upside from the current price of $9.07, though the stock has faced headwinds with a -50.46% return over the past year. According to InvestingPro analysis, Sunrun is currently trading below its Fair Value.

The price target increase follows Sunrun’s second-quarter performance, which demonstrated significant operating leverage as the company achieved higher value capture per customer while reducing customer acquisition costs and operating expenses. InvestingPro data shows revenue growth of 3.27% in the last twelve months, though the company’s overall financial health score remains weak. Get access to 15+ additional ProTips and comprehensive analysis with InvestingPro.

Oppenheimer highlighted Sunrun’s execution in virtual power plant monetization and improved energy storage attachment rates, noting these areas provide opportunities for high-margin incremental revenue growth.

The research firm believes Sunrun has substantial opportunities to increase prices given current electricity price trends, leverage equipment purchasing power, and gain market share as the largest third-party finance provider for solar and storage solutions.

Oppenheimer also identified Sunrun as a key beneficiary of lower interest rates, suggesting that potential future rate cuts are not yet fully reflected in the company’s stock price.

In other recent news, Sunrun reported its second-quarter 2025 financial results, showcasing a significant earnings per share (EPS) surprise. The company posted an EPS of $1.07, far surpassing the forecast of -$0.1064, and revenue reached $569.3 million, slightly above the expected $558.15 million. Sunrun’s installations also exceeded expectations, with 227.2 megawatts installed compared to Wolfe Research’s estimate of 205.3 megawatts. Battery storage installations were strong at 391.5 megawatt-hours, driven by a 69% attach rate. UBS reiterated its Buy rating and a $15 price target, noting Sunrun’s fifth consecutive quarter of positive cash flow and strategic shift towards storage. Meanwhile, JPMorgan raised its price target to $20, maintaining an Overweight rating, citing strong storage growth and reduced operating costs. The company also reported a contracted value that significantly exceeded expectations and increased its full-year 2025 guidance. These developments highlight Sunrun’s continued progress in its strategic initiatives.

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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