Clear Street Raises PT on Sunrun (RUN) to $14, Keeps Buy Rating

Clear Street raised Sunrun's (RUN) price target to $14 from $12, maintaining a Buy rating. The firm believes US Treasury guidance on the investment tax credit 48E is positive for Sunrun, as it suggests a significant negative change to the Internal Revenue Service definition has not occurred. Sunrun designs, develops, installs, and maintains residential solar energy systems through three channels: solar partnerships, direct-to-consumer, and strategic partnerships.

Sunrun Inc. (NASDAQ: RUN) shares have been surging Friday afternoon, following bullish analyst notes from Wells Fargo and Clear Street. Both firms have raised their price targets for the residential solar energy company, citing positive guidance from the U.S. Treasury regarding the investment tax credit 48E.

Wells Fargo analyst Michael Blum reiterated an Overweight rating on Sunrun, raising the firm's price target to $14 from $8 [1]. This positive sentiment comes on the heels of Sunrun's strong second-quarter earnings report, where the company posted a surprise profit of $1.07 per share, significantly exceeding the consensus estimate for a loss of 18 cents. Revenue also beat expectations, coming in at $569.33 million, with record storage growth and a 15% year-over-year increase in new subscriber additions [1].

Clear Street, on the other hand, raised its price target on Sunrun to $14 from $12, maintaining a Buy rating [2]. The firm believes that the US Treasury's guidance on the investment tax credit 48E is positive for Sunrun, as it suggests a significant negative change to the Internal Revenue Service definition has not occurred. This clarity could potentially benefit Sunrun's business model, which involves the design, development, installation, sale, ownership, and maintenance of residential solar energy systems through three channels: solar partnerships, direct-to-consumer, and strategic partnerships [2].

Sunrun's recent partnership with Tesla Inc. in the Texas market is also contributing to the positive sentiment. The collaboration aims to provide predictable electricity bills by pairing Tesla Powerwall energy storage with Sunrun's solar offerings, further enhancing the company's position in the competitive home energy market [1].

As of Friday afternoon, Sunrun shares were trading higher by 7.78% to $11.29, with a 52-week high of $22.23 and a 52-week low of $5.38 [1]. RBC Capital's Christopher Dendrinos also upgraded Sunrun to Outperform with a $16 price target, citing policy clarity that boosts growth visibility and cash generation [3]. Dendrinos expects Sunrun to gain market share as tax credit shifts drive demand toward its third-party ownership model.

References:
[1] https://www.benzinga.com/trading-ideas/movers/25/08/47164243/sunrun-run-stock-soars-as-wells-fargo-nearly-doubles-price-target
[2] https://finance.yahoo.com/news/clear-street-raises-pt-sunrun-040153916.html
[3] https://www.benzinga.com/analyst-stock-ratings/reiteration/25/08/47191654/sunrun-poised-to-gain-market-share-as-policy-shifts-boost-its-solar-model-analyst