UPDATE: Deutsche Bank Starts Sunrun (RUN) at Buy

Deutsche Bank analyst Corinne Blanchard initiates coverage on Sunrun (NASDAQ: RUN) with a Buy rating and a price target of $36.00.

The analyst comments "We initiate coverage on Sunrun (RUN) with a BUY rating. We like the exposure to the US Residential solar market, which is poised for strong growth trends (+15%.pa. to reach over 15% penetration rate by 2030 vs currently 4%), especially now with the Inflation Reduction Act (IRA) as it will further boost demand via tax credits / manufacturing credits to any domestic content. We are also positive on energy storage pairing, to become increasingly important and key for new customer acquisitions. That being said, we adopt a more cautious tone on Sunrun's financing which we will monitor in the coming quarters. Overall, we are positive on the company's growth, our $36 PT is derived using DevCo and PowerCo valuation, which we believe captures the recurring cash flow nature of the business but also the ability to create value and generate cash. We also view the recent share sell-off as presenting a buying opportunity."

For an analyst ratings summary and ratings history on Sunrun click here. For more ratings news on Sunrun click here.

Shares of Sunrun closed at $30.49 yesterday.

You May Also Be Interested In

• BofA Securities Resumes American Eagle Outfitters (AEO) at Underperform
• Cantor Fitzgerald Reiterates Overweight Rating on Merlin Labs (MRLN)
• Intuitive Machines Inc. (LUNR) PT Lowered to $32 at Cantor Fitzgerald, Reaffirms Overweight Rating