Sunrun’s Strong Q1 Performance and Growth Outlook Affirm Buy Rating

Sunrun (RUN – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Maheep Mandloi from Mizuho Securities reiterated a Buy rating on the stock and has a $23.00 price target.

Maheep Mandloi has given his Buy rating due to a combination of factors that underscore Sunrun’s potential in the solar and storage markets. Mandloi recognizes the company’s Q1 performance, where Sunrun surpassed expected solar and storage installations, as a sign of robust operational capabilities. Additionally, the company’s guidance for continued growth in Q2 installations, despite a conservative outlook for solar installations due to increased competition, is viewed positively. The reaffirmed commitment to cash generation, bolstered by higher tax credits and strong battery storage installation guidance, further solidifies the belief in Sunrun’s financial strategy and market position.
Furthermore, Mandloi is confident in Sunrun’s ability to mitigate competitive pressures, citing the limited benefits for new market entrants and Sunrun’s established leasing business and in-house installation network. The analyst perceives the competitive landscape as temporary and likely unsustainable for Sunrun’s rivals, considering their potentially lower profitability and similar capital costs. Sunrun’s focus on direct installs, which are less affected by competition, and the conservative nature of their revised guidance also contribute to the positive outlook and support the Buy rating, with an unchanged price target.

In another report released yesterday, Citi also maintained a Buy rating on the stock with a $17.00 price target.

Based on the recent corporate insider activity of 112 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of RUN in relation to earlier this year.

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Sunrun (RUN) Company Description:

SunRun, Inc. engages in the design, development, installation, sale, ownership and maintenance of residential solar energy systems. It sells solar service offerings and install solar energy systems for homeowners through its direct-to-consumer channel. It also offers plans such as monthly lease, full amount lease, purchase system, and monthly loan. The company was founded by Edward H. Fenster, Robert N. Kreamer and Lynn M. Jurich in January 2007 and is headquartered in San Francisco, CA.