Buy Rating Reaffirmed on Sunrun’s Shift to Profitable Growth Amidst Mixed Quarterly Results

Goldman Sachs analyst Brian K. Lee has reiterated their bullish stance on RUN stock, giving a Buy rating today.

Brian K. Lee has given his Buy rating due to a combination of factors that suggest Sunrun’s strategic shift toward prioritizing profitable growth. Despite Sunrun reporting mixed results for the first quarter of 2024, with revenues not meeting expectations, the company’s solar and storage installations surpassed the high end of guidance, indicating operational efficiency and robust demand. This performance aligns with Sunrun’s adjusted focus, as they lowered their 2024 solar growth guidance to concentrate on generating higher margins rather than simply expanding installation volume.
Moreover, the management’s outlook remains positive, expecting a significant improvement in the second half of 2024 after a trough in the first quarter. This projection is underpinned by Sunrun’s commitment to substantial cash generation, with a goal of reaching a $200 million to $500 million annualized run rate by the end of 2024, despite the forecasted reduction in solar installations. Lee’s reaffirmation of the Buy rating reflects confidence in Sunrun’s strategic realignment towards profitability, which is anticipated to yield long-term benefits for the company and its shareholders.

In another report released today, Jefferies also maintained a Buy rating on the stock with a $26.00 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.