What Happened?
Shares of residential solar energy company Sunrun (NASDAQ: RUN) jumped 2.8% in the afternoon session after BMO Capital upgraded the stock to "Market Perform" from "Underperform" and nearly doubled its price target.
The firm raised its price target on the solar company's shares to $19 from $10. The analyst noted that Sunrun might reach a level of cash generation in 2026 that would allow it to consider share buybacks or start paying a dividend. This development signaled stronger financial flexibility and potential returns to shareholders. The upgrade followed a period of positive momentum for solar stocks, with Sunrun having received several analyst upgrades in the previous two months. Following the news, the stock touched a two-year high.
Is now the time to buy Sunrun? Access our full analysis report here.
What Is The Market Telling Us
Sunrun’s shares are extremely volatile and have had 80 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock gained 9.7% on the news that an analyst at Susquehanna significantly raised the price target on the stock. The firm's analyst, Biju Perincheril, maintained a "Positive" rating on the company while lifting the price target to $23.00 from a previous $13.00. This substantial adjustment represented a 76.92% increase, signaling a much more optimistic outlook on the stock's future value from the financial firm.
Sunrun is up 113% since the beginning of the year, and at $21.78 per share, has set a new 52-week high. Investors who bought $1,000 worth of Sunrun’s shares 5 years ago would now be looking at an investment worth $339.21.
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