UPDATE: Piper Sandler Downgrades Sunrun (RUN) to Neutral

Piper Sandler analyst Kashy Harrison downgraded Sunrun (NASDAQ: RUN) from Overweight to Neutral with a price target of $29.00 (from $35.00).

The analyst comments "As we enter an economic recession (PSC macro team believes the recession starts in 2H’22), we believe investors will approach our coverage with a risk-off mentality. Accordingly, we believe investors will gravitate toward companies that possess less demand risk, strong balance sheets, can grow EPS, and/or generate FCF. We expect US resi to decelerate next year, RUN possesses a more levered balance sheet and we have less confidence in RUN’s ability to generate levered cash entering ‘23 given the trend in declining corporate cash lately, volatile interest rates, along with uncertainty surrounding average post NEM-3 econs. Absent a massive drop in interest rates, we struggle with the catalyst capable of propelling the stock higher. Accordingly, we are downgrading RUN to Neutral from Overweight."

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 $24.34 yesterday.

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