Sunrun downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded Sunrun (RUN) to Equal Weight from Overweight with a price target of $11, down from $27. The firm believes Sunrun’s path for outperformance is limited, as it sees downside risks for growth due to the consumer-facing nature of its product, the sensitivity of unit economics to elevated interest rates, and an uncertain policy environment. In an environment where unit economics worsen, and growth slows substantially, there could be downside to Sunrun’s cash generation targets, which would put downward pressure on the stock, the analyst tells investors in a research note.