Sunrun stock rating reiterated at Buy by UBS on strong storage growth

Published 07/08/2025, 11:52
Sunrun stock rating reiterated at Buy by UBS on strong storage growth

Investing.com - UBS has reiterated its Buy rating and $15.00 price target on Sunrun (NASDAQ:RUN) following the company’s second-quarter 2025 results, which slightly exceeded analyst expectations. According to InvestingPro data, the stock currently trades at a significant discount to analysts’ average target of $21, despite operating with a substantial debt burden of $14.1 billion.

The residential solar provider reported $27 million in cash generation for the quarter, marking its fifth consecutive quarter of positive cash flow as the company continues its strategic pivot to become a "storage first" company.

Sunrun’s Upfront Net Subscriber Value reached $5,711 in the quarter, representing the fourth positive quarter in a row and approximately $2,300 above the previous peak achieved in the fourth quarter of 2024.

UBS highlighted this metric as particularly important, noting the strong positive trend should enable Sunrun to capitalize on near-term solar demand in a capital-efficient manner.

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

In other recent news, Sunrun reported strong second-quarter results, with installations reaching 227.2 megawatts, surpassing both Wolfe Research’s estimate of 205.3 megawatts and consensus expectations of 203 megawatts. The company also excelled in battery storage installations, achieving 391.5 megawatt-hours, driven by a 69% attach rate. Sunrun’s aggregate subscriber value reached $1,553 million, exceeding Wolfe Research’s estimate of $1,305 million. Additionally, the company posted a significant earnings per share (EPS) of $1.07, far exceeding the forecast of -$0.1064, with revenue slightly above expectations at $569.3 million.

Following these results, JPMorgan raised its price target for Sunrun to $20.00 from $16.00, maintaining an Overweight rating. The firm attributed the strong performance to a record storage attachment rate, higher installation volumes, and reduced operating costs. Sunrun also increased its full-year 2025 guidance, reflecting confidence in its ongoing growth. Despite these positive developments, Sunrun’s stock experienced a decline in after-hours trading.

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