By Emily Dattilo
Sunrun is "emerging as the clear leader" in the solar sector, UBS says.
Analysts Jon Windham and William Grippin upgraded shares of the solar installer to Buy from Neutral and increased their target for the price to $17 from $14.
Sunrun stock dropped 5.4% to $10.17 in early trading Friday. Over the last 12 months, shares have fallen 35%.
The analysts note the stock is trading near an all-time low valuation despite the start of some positive fundamental trends -- including its market share in California nearly doubling over the last year.
Shares are trading at levels that imply no future growth, but the analyst team forecasts 2025 U.S. residential solar market growth of 15% for Sunrun.
Beyond that, the short project cycles for residential solar make the company an important source for addressing growth needs.
The analysts are also keeping an eye on clean-energy tax credits. They believe an important catalyst for shares is the fate of those credits, which could be changed by Congress as soon as March. UBS anticipates the credits could end earlier than anticipated which, compared to a full repeal, would be a plus for sector valuations.
Write to Emily Dattilo at emily.dattilo@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
January 10, 2025 12:33 ET (17:33 GMT)
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