Sunrun downgraded to Underperform from Hold at Jefferies

Jefferies downgraded Sunrun (RUN) to Underperform from Hold with a price target of $5, down from $6. The firm says budget reconciliation “has residential solar on the chopping block.” While Jefferies expects some improvements on the Inflation Reduction Act from the Senate, it sees limited upside for residential, exposing Sunrun to both near- and long-ter. headwinds. The company will to pivot and adapt to changing tax policy, but this will happen in a contracting market with weakened demand, the analyst tells investors in a research note. The firm believes the Street misses how consequential the “One Big Beautiful Bill Act” is uniquely on residential solar.