Morgan Stanley has revised its outlook on Sunrun (RUN, Financial), reducing the stock's rating from Overweight to Equal Weight. The investment firm has also adjusted its price target for the solar company, bringing it down significantly from $27 to $11. This change reflects concerns over several factors that could hinder Sunrun's potential for outperformance.
The primary reasons cited for the downgrade include the consumer-oriented nature of Sunrun’s offerings, which makes it particularly vulnerable to the current high interest rate environment. The resulting pressure on unit economics could dampen growth prospects and impact the company's ability to achieve its cash generation targets. Moreover, Morgan Stanley notes the uncertainty surrounding policy conditions, which could further complicate Sunrun's growth trajectory.
With these challenges ahead, the firm suggests that Sunrun might face substantial slowing in growth, potentially leading to a negative impact on the stock. Investors are advised to consider these risks, as they could influence the company's future performance and market valuation.
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 $12.94 with a high estimate of $27.00 and a low estimate of $6.00. The average target implies an upside of 88.14% from the current price of $6.88. 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 2.5, 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 $17.82, suggesting a upside of 159.01% from the current price of $6.88. 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.
