Mizuho Securities analyst Maheep Mandloi has maintained their bullish stance on RUN stock, giving a Buy rating yesterday.
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Maheep Mandloi has given his Buy rating due to a combination of factors that highlight Sunrun’s strategic positioning and growth potential. One significant factor is Sunrun’s new ability to sell customer originations to third parties, allowing the company to recognize upfront sales and generate cash, despite a lower net margin. This strategic move opens a new capital source while maintaining operational and maintenance services for these customers, thereby retaining some revenue streams.
Additionally, Sunrun’s management has reported significant purchase commitments for future solar installations, indicating potential growth in customer volume. The company is also ramping up its grid services revenues, which have shown an increase in enrolled customers and imply potential stock price upside. Furthermore, the management’s focus on maintaining leverage and targeting substantial net recourse debt by 2026 aligns with their growth strategy. These elements, combined with a positive demand outlook and a calculated price target based on discounted cash flow, underpin the Buy rating.
In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $21.00 price target.
Based on the recent corporate insider activity of 101 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of RUN in relation to earlier this year.