What Happened?

Shares of residential solar energy company Sunrun (NASDAQ: RUN) jumped 6.8% in the afternoon session after several analysts expressed increased confidence in the company, with both Goldman Sachs and Oppenheimer raising their price targets. 

Goldman Sachs kept its "Buy" rating and lifted its price target on the stock to $21 from $19. In a similar move, Oppenheimer maintained its "Outperform" rating while increasing its price target to $23 from a previous $21. This string of positive analyst updates contributed to growing investor optimism, pushing the stock to a 52-week high during the trading session. The moves followed a pattern of recent positive ratings from other firms, which had also raised their price targets, signaling a broader positive sentiment for the residential solar company's market position and growth prospects.

Is now the time to buy Sunrun? Access our full analysis report here.

What Is The Market Telling Us

Sunrun’s shares are extremely volatile and have had 79 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 7 days ago when the stock gained 2.8% on the news that the company's stock continued to rise following a significant analyst upgrade and news of potential expansion into the data center market. 

This move extended a rally from the previous trading session when the stock jumped after Jefferies upgraded its rating from "Hold" to "Buy." The investment firm also more than doubled its price target to $21 from $11, citing expectations for strong cash generation and future growth. Adding to the positive sentiment, it was reported that Sunrun was exploring the use of its residential batteries to power data centers. This new venture could open up considerable growth opportunities for the solar energy company.

Sunrun is up 101% since the beginning of the year, and at $20.54 per share, has set a new 52-week high. Investors who bought $1,000 worth of Sunrun’s shares 5 years ago would now be looking at an investment worth $287.55.

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