Sunrun sees 21% upside potential after UBS lowers target to $14

GuruFocus.com
30 Nov 2024

UBS Group has significantly lowered its price target for Sunrun (RUN, Financial), reducing it from $18 to $14. This action follows several other research firms downgrading the energy firm's forecasts in the past. The new target price indicates UBS's projection of a 21.21% upside for Sunrun at Wall Street's closing price. However, the downgrade comes with a neutral outlook on the company's stock due to concerns about its growth rate. Similarly, Morgan Stanley (MS, Financial) cut its target from $35 to $27, while Wells Fargo reduced it from $20 to $15. Despite these revisions, there are still some positive outlooks on the company's stock; Goldman Sachs has maintained a buy recommendation with a $20 price target.

  • Warning! GuruFocus has detected 10 Warning Signs with RUN.

Wall Street has had divergent views on Sunrun at different times. UBS analysts pointed to the company's slowdown in expansion and declining revenues, which led to a lower valuation. On the other hand, some firms, including Goldman Sachs ( GS, Financial), have remained bullish on Sunrun for the long term, suggesting that investors in the company's solar energy division are likely to remain steadfast despite short-term fluctuations.

Currently, Sunrun's stock holds a "Hold" rating, with predictions ranging from as low as $7.78 to as high as $27. However, other analysts remain positive about Sunrun's prospects, even as the solar energy sector becomes increasingly competitive.

This article first appeared on GuruFocus.

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