Sunrun Stock Surges as RBC Upgrades to Outperform with $16 Price Target

Sunrun Inc. (RUN) stock surged 10.67% after RBC Capital upgraded the residential solar company's stock from Sector Perform to Outperform, raising its price target to $16 from $12. The company recently posted a surprise profit of $1.07 per share and reported record storage growth and a 15% YoY increase in new subscriber additions. The renewed optimism is fueled by a blockbuster second-quarter earnings report and a strategic partnership with Tesla Inc.

Sunrun Inc. (RUN) stock surged 10.67% on Friday, July 2, 2025, following a significant upgrade from RBC Capital. The investment bank upgraded Sunrun's stock from Sector Perform to Outperform and raised its price target to $16 from $12 [1]. The upgrade reflects RBC’s view that Sunrun deserves a multiple rerating due to increased certainty about long-term opportunities following treasury guidance clarification [1].

The positive sentiment was further fueled by Sunrun's strong second-quarter earnings report. The company posted a surprise profit of $1.07 per share, beating the consensus estimate for a loss of 18 cents. Revenue also exceeded expectations, reaching $569.33 million, marking an 8.7% year-on-year growth [3]. Notably, Sunrun reported record storage growth and a 15% year-over-year increase in new subscriber additions, reflecting strong operational momentum [3].

RBC Capital noted that changes to OB3 guidance have positive implications for Sunrun’s business model, while clarity on commence construction rules for the Investment Tax Credit (ITC) and Production Tax Credit (PTC) further derisk the company’s longer-term growth outlook and value proposition [1]. The new price target implies approximately a 15% cash generation yield to 2026, which RBC believes falls within Sunrun’s historical range [1].

Additionally, Sunrun recently unveiled a strategic partnership with Tesla Inc. focused on the Texas market. The partnership aims to provide predictable electricity bills by pairing Tesla Powerwall energy storage with Sunrun’s solar offerings, potentially enhancing the company’s position in the competitive home energy market [3].

Sunrun’s stock is currently trading at $13.92, up from $12.00 before the RBC Capital upgrade. The company’s strong performance and strategic initiatives have garnered positive analyst ratings, with several firms raising their price targets in recent weeks [1, 3]. While the stock has shown significant momentum, investors should remain cautious given Sunrun’s high debt levels and rapid cash burn [1].

References:
[1] https://www.investing.com/news/analyst-ratings/sunrun-stock-rating-upgraded-to-outperform-by-rbc-capital-on-itc-clarity-93CH-4196799
[2] https://www.tradingview.com/news/stockstory:3f5d1e65d094b:0-run-q2-deep-dive-storage-attachments-cost-discipline-and-policy-tailwinds-drive-outperformance/
[3] https://www.inkl.com/news/sunrun-run-stock-soars-as-wells-fargo-nearly-doubles-price-target