Sunrun upgraded to Buy from Neutral at UBS as shares look attractive

UBS upgraded Sunrun (RUN) to Buy from Neutral with a price target of $17, up from $14. Sunrun looks attractive with the shares trading near all-time low multiples despite emerging positive trends like its California market share has nearly doubled to 22% over the past year, the analyst tells investors in a research note. The firm forecasts 2025E U.S. residential solar market growth of 15%. UBS adds that the key catalyst for shares is the fate of the renewable tax credits in budget reconciliation, potentially as soon as March, and sees revisions to tax credit expiry dates as more likely than a full repeal, which would be positive for sector valuations.