What Happened?
Shares of residential solar energy company Sunrun (NASDAQ: RUN) jumped 4.4% in the afternoon session after analysts at UBS and Citigroup provided favorable updates on the company.
UBS raised its price target on Sunrun to $26 from $16 while keeping a "Buy" rating on the shares. Separately, Citigroup upgraded the stock to "Buy" from "Hold" and increased its price target to $26 from $11. In its note, Citi pointed to clearer government rules regarding solar tax credits. The bank believed this policy clarity, along with the approaching expiration of a federal tax credit for customer-owned systems, would speed up the shift toward solar systems owned by a third party. Sunrun is the market leader in this area, positioning it to benefit from this trend.
After the initial pop the shares cooled down to $20.97, up 2.2% from previous close.
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What Is The Market Telling Us
Sunrun’s shares are extremely volatile and have had 80 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 5.2% on the news that RBC Capital raised its price target on the stock. The investment bank increased its target to $22 per share, up from the previous target of $16. Alongside the new price target, RBC also kept its 'Outperform' rating on the shares. This action signaled the analyst's positive view of the company's future performance, with the new target suggesting a belief in significant potential upside from its prior trading levels.
Sunrun is up 105% since the beginning of the year, and at $20.97 per share, it is trading close to its 52-week high of $21.29 from October 2025. Investors who bought $1,000 worth of Sunrun’s shares 5 years ago would now be looking at an investment worth $369.06.
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