According to CEO Mary Powell, Sunrun (RUN) is considering expanding its operations to supply solar power to data centers. At the Dervos 2024 conference, Powell stated that the company is exploring new opportunities, which may include using its solar power technology to supply power to data centers. If Sunrun does venture into this market, it could be an excellent growth-driving catalyst for RUN stock.
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Why Is Sunrun Stock Rising Today?
Positive market momentum is lifting solar energy stocks across the board today. Sunrun peers First Solar (FSLR) and NextEra Energy (NEE) are both in the green. However, RUN stock may be rising today because Wall Street sentiment toward it is shifting. GLJ Research recently upgraded it from a Sell to a Hold, citing favorable demand trends. This, combined with Powell’s update, is helping Sunrun continue its five-day winning streak.
Now the company may be about to expand into a fast-growing market. Powell states that Sunrun’s future plans “could include working with electric utilities to provide bespoke solar systems for new data centers or leveraging existing Sunrun systems in nearby communities.” Bloomberg reports that a non-disclosure agreement prevented her from offering more context.
Venturing into the data center space is a highly strategic maneuver. Recent data shows that the market is projected to expand at a CAGR of 11.39% between 2024 and 2034, reaching a value of $364.62 billion. This suggests that companies will be investing in building more data centers. If Sunrun can position itself as a reliable provider of sustainable power, it could take RUN stock to new heights as the market soars.
Is Sunrun Stock a Strong Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on RUN stock based on 12 Buys, six Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 70% rally in RUN’s share price over the past year, the average RUN price target of $23 per share implies 50% upside potential.
While GLJ is maintaining its Hold rating, other analysts are more bullish on RUN stock. Chris Dendrinos from RBC Capital recently reiterated a Buy rating and a bullish price target of $19, implying a 26% upside. Piper Sandler’s Kashy Harrison, who also maintains a Buy rating, has a price target of $23.00, implying an upside of 52%.
