TLDR
- RBC Capital upgraded Sunrun (RUN) from Sector Perform to Outperform with a $16 price target, up from $12
- Stock surged 32.82% following regulatory clarity on Investment Tax Credit and Production Tax Credit rules
- Q2 revenue hit $569.3 million, up 9% year-over-year, with EPS jumping to $1.07 from $0.55 previously
- Storage attachment rate reached record high of 70%, showing strong progress in battery integration
- Multiple analysts raised price targets, with J.P. Morgan lifting target to $20 and Oppenheimer to $21
Sunrun stock rocketed over 32% as RBC Capital upgraded the solar company and multiple analysts raised price targets following strong quarterly results and regulatory developments.
The residential solar installer has gained more than 35% in the past month. The rally picked up steam after the company’s Q2 earnings release on August 6.
RBC Capital moved Sunrun from Sector Perform to Outperform. The firm raised its price target to $16 from $12, citing increased certainty about long-term opportunities.
The upgrade reflects treasury guidance clarification on tax credits. Changes to OB3 guidance have positive implications for Sunrun’s business model, according to RBC.
Clarity on commence construction rules for the Investment Tax Credit and Production Tax Credit further reduces risks. This improved the company’s longer-term growth outlook and value proposition.
RBC’s new price target implies approximately a 15% cash generation yield to 2026. The firm believes this falls within Sunrun’s historical range.
Analyst Christopher Dendrinos made the rating change as part of his assessment. The analyst cited Sunrun’s improved business outlook following regulatory clarifications.
Strong Q2 Performance Drives Momentum
Sunrun delivered record Q2 results that exceeded expectations across key metrics. Revenue climbed 9% year-over-year to $569.3 million, beating consensus estimates of $559 million.
Earnings per share surged to $1.07 in Q2 2025, up from $0.55 a year earlier. This easily beat expectations for a loss and restored investor confidence in the solar sector.
The company’s storage attachment rate reached an all-time high of 70%. This metric shows the percentage of solar installations that include battery storage systems.
The high attachment rate underscores Sunrun’s leadership in distributed solar and clean energy solutions. It demonstrates the company is expanding beyond just solar panels into broader energy networks.
Since the Q2 release, Sunrun’s stock has surged over 45%. The shares were up another 3% in pre-market trading following the latest developments.
Analyst Upgrades Paint Bullish Picture
Multiple brokerages raised price targets following the strong quarterly performance. J.P. Morgan’s Mark Strouse lifted his price target from $16 to $20 while maintaining a Buy rating.
The new target implies growth potential of over 40% from current levels. Oppenheimer’s Colin Rusch boosted his target to $21, citing strong contracted value and growth prospects.
Rusch believes Sunrun can boost profits through several strategies. These include raising prices as electricity costs climb and using buying power to cut equipment costs.
The analyst also sees the company growing its lead as the top solar financing provider. He expects Sunrun to benefit from lower interest rates in the future.
Wells Fargo’s Michael Blum raised his target to $14. Blum stated that Sunrun’s cash flow outlook looks strong following recent regulatory developments.
He continues to view the company as a top pick in residential solar. Mizuho also raised its price target to $25, maintaining an Outperform rating.
UBS increased its price target to $16, citing revised forecasts for solar capacity deployment. Freedom Broker adjusted its target to $14.50 while maintaining a Hold rating.
The stock currently trades at $13.92 with analyst targets ranging from $9 to $25. Wall Street gives RUN a Moderate Buy consensus rating based on 11 Buys, eight Holds, and two Sells.
The average price target of $15.40 implies 10.5% upside potential from current levels.
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