Why Credit Suisse Is Turning Bullish On Sunrun

While rising interest rates remains a challenge, Sunrun Inc RUN faces a number of tailwinds that could offset the impact, according to Credit Suisse.

The Sunrun Analyst: Michael Weinstein upgraded the rating for Sunrun to Outperform, while keeping the price target unchanged at $79.

The Sunrun Thesis: The change in rating follows the recent pullback in the company’s stock, taking its share price lower by more than 20% in two weeks, Weinstein said in the upgrade note.

“We see multiple tailwinds that help offset higher rates over the next few years — higher leverage, spread compression, solar import tariff reduction, lower solar equipment costs, rising electric bills and Biden policy push,” he wrote.

“We expect minimal impact to our 2021 deployment forecast as any delays in Q1 installations due to severe weather conditions will only be pushed out Q2 to later this year,” the analyst said.

Sunrun’s stock is down 11% year to date, versus a 2% rise in Sunnova Energy International Inc’s NOVA shares and a 43% upturn in SunPower Corporation’s SPWR stock, he further noted.

RUN Price Action: Shares of Sunrun had declined by 0.32% to $62.36 at the time of publication Thursday.

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