Sunrun Stock Is Rising Tuesday: What's Going On?

Sunrun Inc RUN shares are trading higher Tuesday. The company announced a national partnership with Toll Brothers Inc TOL to provide solar power and storage to Toll Brothers homes.

What Happened: Toll Brothers and Sunrun inked a national partnership that will make Sunrun the exclusive provider of solar power as an included feature in all Toll Brothers homes in California. The two companies also have a preferred agreement to provide solar for additional Toll Brothers divisions across the country.

Sunrun will serve as a “one-stop shop” for solar customers in California, which includes sales, design, permitting, installation, customer care and warranty. Sunrun will also provide home buyers a choice of an EnPhase or Tesla Powerwall 3 battery storage system.

“We are pleased to announce this new agreement with Sunrun as our national solar and storage partner, providing our home buyers with state-of-the-art options for clean, reliable power in their new homes,” said Seth Ring, executive vice president of Toll Brothers.

“Since 2015, Toll Brothers has been committed to incorporating solar into our communities in California and beyond, and we are excited to continue this commitment to innovation and our environment with Sunrun.”

Under the agreement, Sunrun’s solar products can be offered to Toll Brothers homebuyers in additional markets as an option or as an included feature financed with the home. In certain markets, where third-party ownership is allowed and available, solar can be added to the home at no cost to the homebuyer.

Tuesday morning, Morgan Stanley analyst Stephen Byrd maintained coverage on Sunrun with an Overweight rating and price target of $35.

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RUN Price Action: Sunrun shares were up 3.38% at $19.55 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Tesla.