Sunrun stock price target raised to $20 by JPMorgan on strong storage growth

Published 07/08/2025, 09:24
Sunrun stock price target raised to $20 by JPMorgan on strong storage growth

Investing.com - JPMorgan raised its price target on Sunrun (NASDAQ:RUN) to $20.00 from $16.00 on Thursday, maintaining an Overweight rating following the company’s second-quarter results. The stock, currently trading at $9.07, has seen significant volatility with a 50% decline over the past year. According to InvestingPro analysis, the company’s Fair Value suggests it may be undervalued at current levels.

The solar provider reported contracted value for the second quarter that significantly exceeded expectations and increased its full-year 2025 guidance. JPMorgan attributed the strong performance to a record storage attachment rate, higher installation volumes, and reduced operating costs. InvestingPro data shows revenue of $2.08 billion in the last twelve months, though with a concerning debt-to-equity ratio of 5.23.

Cash generation for the quarter fell below expectations, primarily due to timing of working capital movements, including safe harbor activity. Despite this, Sunrun maintained its full-year cash outlook. InvestingPro subscribers have access to 15+ additional exclusive insights about Sunrun’s financial health and growth prospects through detailed Pro Research Reports.

The company expressed optimism about its execution strategy and benefits from the Ownership-Based Bonus Buydown (OBBB) program, which provides preferential treatment for lease and power purchase agreement markets compared to cash and loan options. Sunrun is actively implementing its safe harbor strategy to extend business visibility.

JPMorgan noted that Sunrun has presented a case for maintaining profitable project returns even without solar tax credits by 2028, driven by anticipated cost reductions, higher utility pricing, and grid services revenue.

In other recent news, Sunrun Inc . announced its Q2 2025 financial results, showcasing a notable earnings per share (EPS) surprise. The company reported an EPS of $1.07, significantly surpassing the analysts’ forecast of -$0.1064. Additionally, Sunrun’s revenue reached $569.3 million, slightly exceeding the expected $558.15 million. These recent developments highlight the company’s financial performance, despite a decline in stock price in after-hours trading.

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