Analyst Jeff Osborne of TD Cowen maintained a Buy rating on Sunrun (RUN – Research Report), retaining the price target of $14.00.
Jeff Osborne has given his Buy rating due to a combination of factors that suggest Sunrun is well-positioned to achieve its financial targets in the near term. Despite the challenges posed by soft residential solar demand, uncertainties surrounding the Inflation Reduction Act (IRA), and tariffs, Sunrun has managed to secure its future prospects through strategic moves such as safe harbor deals, asset-backed securities, and tax equity capital raised earlier in the year. These actions provide a buffer for the company’s 2025 results, even though there are acknowledged risks beyond that year.
Furthermore, Osborne sees potential for Sunrun to meet its cash generation goals for the first quarter of 2025 and the full year, driven by increased battery attachment rates, rising Investment Tax Credit (ITC), and gains in third-party ownership (TPO) market share. While elevated interest rates and IRA uncertainties have dampened demand expectations for U.S. residential solar, Osborne remains optimistic about Sunrun’s ability to capitalize on TPO share gains. Although there is uncertainty post-2025, he anticipates management will highlight investments in Republican districts and maintain a stable outlook for ITC, which could reassure investors.