GLJ says Freedom Forever bankruptcy eliminates distribution channel for Sunrun

GLJ Research says the Chapter 11 bankruptcy filing of Freedom Forever on April 15 eliminates a “significant distribution channel” for Sunrun (RUN), implying lower overall volumes and cash generation. The bankruptcy filing, coupled with the Texas Attorney General fraud investigation into Sunrun and Freedom Forever for violations of the Deceptive Trade Practices-Consumer Protection Act launched on April 3, “provides critical real-time validation of our bear thesis on Sunrun,” adds the analyst, who has a Sell rating and $4.63 price target on Sunrun shares.