Sunrun (RUN) PT Raised to 'Street High' $79 at BofA Securities on Record Low Cost of Debt

BofA Securities analyst Julien Dumoulin-Smith raised the price target on Sunrun (NASDAQ: RUN) to a 'Street High' $79.00 (from $51.50) while maintaining a Buy rating.

Dumoulin-Smith highlighted the latest asset-backed security (ABS) issuance for RUN’s post-consolidation resi solar PPA/lease assets, underscores "the record low cost of debt." As a result, the firm lowered its discount rates to 3.5% unlevered (4% prior) to reflect lower cost of capital.

The analyst noted that with a customer base of 500K+ post-consolidation, management expects to pursue upsell opportunities near-term. The firm sees opportunity through expressed ‘blend and extend’ contracts.

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