Sunrun stock price target raised to $16 by UBS on higher deployment forecast

Published 08/08/2025, 12:28
Sunrun stock price target raised to $16 by UBS on higher deployment forecast

Investing.com - UBS raised its price target on Sunrun (NASDAQ:RUN) to $16.00 from $15.00 on Friday, while maintaining a Buy rating on the residential solar company. The stock, currently trading at $12, has shown remarkable momentum with a 22% gain in the past week, according to InvestingPro data.

The price target increase follows UBS’s revision of Sunrun’s solar capacity deployment forecasts for 2025, 2026, and 2027 to 914MW, 1,069MW, and 1,230MW, respectively, up from previous estimates of 874MW, 1,023MW, and 1,176MW.

UBS also adjusted its storage capacity deployment forecasts for the same years to 1,672MWh, 1,973MWh, and 2,328MWh, up from earlier projections of 1,591MWh, 1,878MWh, and 2,216MWh.

The firm maintains its Buy rating on Sunrun, citing the company’s leading position in the residential solar leasing market, which UBS believes will benefit from load growth, increasing battery attachment, and preferential tax treatment for leased residential solar systems and storage.

UBS also noted that Sunrun’s growing installed battery capacity creates long-term opportunity for shareholder value creation, given current grid challenges.

In other recent news, Sunrun reported strong second-quarter results, surpassing consensus estimates in both solar and storage additions. The company’s contracted net value creation margin increased by 12 percentage points sequentially and 17 percentage points year-over-year. Despite this, Sunrun’s cash generation for the quarter did not meet expectations, although the company maintained its full-year cash generation range of $200 million to $500 million. Several analyst firms have responded to these results with varying ratings. Mizuho (NYSE:MFG) raised its price target for Sunrun to $25, maintaining an Outperform rating due to the company’s strong performance. Meanwhile, BMO Capital increased its price target to $10, keeping an Underperform rating, and Oppenheimer raised its target to $21 with an Outperform rating. Goldman Sachs reiterated a Buy rating with a $15 price target, noting the stronger-than-expected volume growth in solar and storage. Conversely, GLJ Research reiterated its Sell rating, citing concerns about potential risks from upcoming Treasury guidance. These developments reflect a diverse range of perspectives from analysts on Sunrun’s recent performance and future outlook.

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