Sunrun downgraded to Hold from Buy at Jefferies

Jefferies downgraded Sunrun (RUN) to Hold from Buy with a price target of $8, down from $14. The firm says the lack of recovery in residential solar coupled with persistent Inflation Reduction Act uncertainty make it difficult to underwrite any share outperformance in the residential solar group, even a “best in class” stock like Sunrun. Jefferies credits Sunrun for navigating market volatility and macro uncertainty effectively and generating positive cash flow, but says the “unknowns continue to mount” in light of growing caution on the Inflation Reduction Act. It puts a “pause for now” on the stock pending further clarity.