Sunrun stock rating upgraded to Outperform by RBC Capital on ITC clarity

Published 18/08/2025, 09:08
Sunrun stock rating upgraded to Outperform by RBC Capital on ITC clarity

Investing.com - RBC Capital upgraded Sunrun (NASDAQ:RUN) from Sector Perform to Outperform and raised its price target to $16.00 from $12.00. The stock, currently trading at $13.92, has shown strong momentum with a 20% gain in the past week and over 57% surge in the last six months.

The upgrade reflects RBC’s view that Sunrun deserves a multiple rerating due to increased certainty about long-term opportunities following treasury guidance clarification. According to InvestingPro data, while analyst targets range from $9 to $25, investors should note the company operates with significant debt and rapid cash burn.

RBC Capital noted that changes to OB3 guidance have positive implications for Sunrun’s business model, while clarity on commence construction rules for the Investment Tax Credit (ITC) and Production Tax Credit (PTC) further derisk the company’s longer-term growth outlook and value proposition.

The new price target implies approximately a 15% cash generation yield to 2026, which RBC believes falls within Sunrun’s historical range.

The firm’s analyst Christopher Dendrinos made the rating change as part of his assessment of Sunrun’s improved business outlook following the regulatory clarifications.

In other recent news, Sunrun reported strong second-quarter earnings, with revenue reaching $569.3 million, marking an 8.7% increase compared to the previous year and surpassing consensus estimates of $559 million. This performance has led Mizuho to raise its price target for Sunrun to $25, maintaining an Outperform rating, as the company exceeded expectations in solar and storage additions. UBS also increased its price target to $16, citing revised forecasts for Sunrun’s solar capacity deployment in the coming years. Freedom Broker adjusted its price target to $14.50, following the positive earnings report, while maintaining a Hold rating.

Additionally, Wells Fargo raised its price target to $14, based on a new valuation framework, and kept an Overweight rating on the stock. In another development, GLJ Research upgraded Sunrun from a Sell to a Hold rating, influenced by favorable U.S. Treasury guidance for the residential solar sector. These recent developments reflect a positive outlook from analysts on Sunrun’s future performance and growth 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.