Sunrun (RUN) PT Raised to $23 at Piper Sandler

Piper Sandler analyst Kashy Harrison raised the price target on Sunrun (NASDAQ: RUN) to $23.00 (from $20.00) while maintaining a Overweight rating.

The analyst commented, "During '24, investors have mainly been looking for proof that RUN can successfully generate levered cash within an elevated financing environment. In our view, RUN delivered well against expectations this quarter by generating $217M of levered cash (includes non-recourse proceeds) and guiding to cash generation during 2H'24 (FY'24 should be slightly positive). Further, RUN provided its 2025 cash generation expectation ($350-$600M) which reflects the higher ITC stemming from domestic content. If RUN successfully executes then the company should exit '25 with $1.13-$1.46B of unrestricted cash which will be used to reduce recourse debt and potentially return capital to shareholders (likely via stock repurchases). And if financing costs were to drop materially, RUN's cash generation would be biased higher (100 bps = $240M). Additional quarters of execution may be required for investor confidence to improve (given innate business model complexity); nonetheless, we expect this update to be well-received. Reiterate OW."

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