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On Wednesday, UBS analysts updated their outlook on Sunrun shares (NASDAQ:RUN), lifting the price target to $17.00 from the previous $15.00, while reiterating a Buy rating on the stock. Currently trading at $11.90, the stock has shown remarkable momentum with a 61% surge in the past week. The adjustment follows recent developments in renewable energy tax credit policies that are expected to benefit the company.
The UBS analyst cited the introduction of a budget proposal by the House Ways & Means Committee on May 12, 2025, as a pivotal factor for the revised price target. The proposal suggests modifications to the renewable tax credit policy, which are seen as particularly advantageous for Sunrun due to its significant presence in the leased residential solar systems market.
Sunrun, a leader in residential solar, storage, and energy services, is poised to capitalize on the proposed legislative changes. The company’s commanding market share is a key element that supports the positive outlook from UBS.
The analyst’s endorsement of Sunrun’s stock with a Buy rating remains unchanged, underpinned by the belief that the company is well-positioned to benefit from the preliminary determinations on tax credit policy. The favorable stance on the stock reflects confidence in Sunrun’s future performance in light of the potential policy tailwinds.
Investors and market watchers are keeping a close eye on Sunrun as the company continues to navigate the evolving landscape of renewable energy incentives and its impact on the broader market. With the updated price target and sustained Buy rating, Sunrun’s stock remains a focus amidst discussions of renewable energy policy and its influence on industry players. InvestingPro analysis reveals 15 additional key insights about Sunrun’s financial health and market position, available exclusively to subscribers through the comprehensive Pro Research Report.
In other recent news, Sunrun Inc . reported a notable performance for the first quarter of 2025, surpassing earnings expectations with an EPS of -$0.20, compared to the forecast of -$0.37. The company’s revenue also exceeded projections, reaching $504.3 million against the expected $486.1 million. Analysts from Mizuho (NYSE:MFG) have shown confidence in Sunrun by raising the firm’s price target to $16, maintaining an Outperform rating, while Barclays (LON:BARC) reaffirmed its Equalweight rating with a $15 target. Sunrun generated $56 million in cash during the quarter, significantly higher than Barclays’ estimate of $12 million, and used this to reduce $27 million in parent debt.
The company anticipates a mid-single-digit growth in new customer acquisitions, a positive outlook compared to the estimated decline in the U.S. residential solar market. This optimism is bolstered by the launch of Sunrun’s Flex (NASDAQ:FLEX) product, which allows customers to invest in larger solar systems to meet future energy needs. Sunrun’s management has also updated its financial metrics to align more closely with GAAP standards, aiming to enhance transparency for investors. Despite potential tariff impacts that could cost the company $100-$200 million, Sunrun remains confident in its cash generation target of $200-$500 million for the year 2025.
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