Sunrun: Goldman Sachs Keeps Buy Rating, Raises PT to $21 from $19.

Sunrun: Goldman Sachs Keeps Buy Rating, Raises PT to $21 from $19.

Goldman Sachs has maintained its Buy rating on Sunrun Inc. (NASDAQ: RUN) and raised its price target to $21 from $19, according to a recent analyst report. This move comes amidst a series of positive developments for the residential solar energy company, including a significant analyst upgrade and potential expansion into the data center market.

The upgrade by Goldman Sachs follows a similar move by Jefferies, which had upgraded Sunrun's rating to Buy from Hold and raised its price target to $21 from $11. Jefferies cited expectations for strong cash generation and future growth, while Goldman Sachs' report emphasizes Sunrun's robust financial performance and strategic positioning in the residential solar market.

Sunrun's stock has experienced significant volatility in recent months, with 79 moves greater than 5% over the past year. Despite this volatility, today's move suggests that the market considers the latest news meaningful but not a fundamental shift in the company's prospects. Sunrun's shares have been on a rally since the beginning of the year, up 87.3% and setting a new 52-week high at $19.12 per share.

Goldman Sachs' upgrade and price target increase reflect a positive outlook for Sunrun's growth prospects, particularly in the face of potential market contractions and the expiration of 25D consumer tax credits. The company's strategic focus on PPA/lease contracts positions it well for future opportunities, even as the solar install market might contract. Analysts predict that Sunrun's potential could be understated, given its expected subscriber growth and rising third-party ownership deals.

Sunrun's financial performance presents a mixed picture, with a 3-year revenue growth rate of 5.3%, moderate expansion, but ongoing challenges in achieving profitability. The company's debt-to-equity ratio of 4.83 indicates a high level of leverage, which could pose risks if not managed effectively. However, recent policy developments, such as the passage of the One Big Beautiful Bill Act (OBBBA) in July 2025, have provided favorable guidance for residential solar companies, contributing to the recent upgrade and stock price increase.

In conclusion, Sunrun's stock has seen renewed favor following positive analyst sentiment and supportive policy developments. The recent upgrade by Goldman Sachs underscores the firm's confidence in Sunrun's growth prospects and market leadership. Whether Sunrun can maintain this momentum will depend on its ability to execute its growth strategy and navigate the evolving regulatory landscape.

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