Credit Suisse Starts Sunrun (RUN) at Outperform

Credit Suisse initiates coverage on Sunrun (NASDAQ: RUN) with a Outperform rating and a price target of $20.00.

Analyst P. Jobin commented, "In our view, RUN is positioned to gain share in the high growth solar service market with a differentiated multi-channel strategy and value enhancing pricing model. Sunrun is the third largest solar leasing company in the U.S., with 10% market share, and is projected to grow volumes organically by 73% in 2015. We believe that the company is well positioned to outgrow the market and generate above-peer returns in the long term given its multi-channel strategy, providing capital-efficient growth and broad reach, along with a distinctive pricing model that maximizes project-level returns."

He added, "Our $20 target price is based on a discounted cash flow framework that assumes a 50% discount to fundamental value of $40/share based on 54% growth in 2015, 75% in 2016, and 44% in 2017 and then only 15% through 2020. Our $20 target price implies 2.3x net retained value, a discount to SCTY's current multiple of 2.6x."

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 $11.62 yesterday.

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