Sunrun stock rating upgraded to Hold from Sell by GLJ Research

Published 15/08/2025, 20:58
Sunrun stock rating upgraded to Hold from Sell by GLJ Research

Investing.com - GLJ Research upgraded Sunrun (NASDAQ:RUN) from Sell to Hold on Friday, citing favorable U.S. Treasury guidance for the residential solar sector. The stock, currently trading at $13.90, has shown significant volatility with a 46% decline over the past year, according to InvestingPro data.

The upgrade follows the Treasury Department’s release of new guidance that GLJ Research describes as positive news for residential solar companies. According to the firm, many industry observers had expected the Trump administration to eliminate a tax credit loophole. This development could be crucial for Sunrun’s financial outlook, as InvestingPro analysis shows the company operates with a significant debt burden and currently faces cash flow challenges.

The loophole in question allows residential solar companies to claim tax credits for projects several years into the future, with a potential Safe Harbor cutoff date of August 17, 2025.

GLJ Research notes that contrary to these expectations, the Trump administration’s Treasury Department did "the opposite" of restricting these tax benefits in its latest guidance.

The firm’s analyst Gordon Johnson had previously maintained a Sell rating on Sunrun stock before this policy development prompted the upgrade to Hold.

In other recent news, Sunrun’s second-quarter earnings report revealed a revenue of $569.3 million, marking an 8.7% year-over-year growth and surpassing consensus estimates of $559 million. Mizuho responded to Sunrun’s strong performance by raising its price target to $25, citing the company’s success in exceeding expectations for solar and storage additions and an increase in its contracted net value creation margin. UBS also adjusted its price target to $16, reflecting revised forecasts for Sunrun’s solar capacity deployments for the coming years. Freedom Broker increased its price target to $14.50, maintaining a Hold rating, following the earnings release. Wells Fargo updated its price target to $14, emphasizing a new valuation framework based on cash generation and terminal value. BMO Capital raised its target to $10, although it maintained an Underperform rating, noting strong performance in key areas but highlighting a shortfall in quarterly cash generation. These developments reflect a range of analyst perspectives on Sunrun’s recent financial performance and future potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.