Sunrun Inc. (RUN, Financial) experienced a downgrade from Citi, shifting from a 'Buy' rating to 'Neutral.' The firm set a price target of $7, citing significant risks tied to possible changes in tax credits that affect the residential solar industry.
An impending alteration to the Inflation Reduction Act might lead to the removal of investment tax credit (ITC) bonus adders. This could pose serious challenges, as it impacts the viability of third-party ownership financing, which accounts for around half of residential solar installations in the United States.
The anticipated regulatory changes could severely restrict Sunrun's future cash flow after current safe harbor provisions are fully utilized. As a result, the firm expressed concern over Sunrun's ability to sustain its financial strength in the long term under these conditions.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 22 analysts, the average target price for Sunrun Inc (RUN, Financial) is $13.40 with a high estimate of $27.00 and a low estimate of $6.00. The average target implies an upside of 105.34% from the current price of $6.53. More detailed estimate data can be found on the Sunrun Inc (RUN) Forecast page.
Based on the consensus recommendation from 26 brokerage firms, Sunrun Inc's (RUN, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Sunrun Inc (RUN, Financial) in one year is $17.84, suggesting a upside of 173.41% from the current price of $6.525. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Sunrun Inc (RUN) Summary page.
