Morgan Stanley Issues Pessimistic Forecast for Sunrun (NASDAQ:RUN) Stock Price

Key Points

• Morgan Stanley cut Sunrun’s price target from $15 to $10 while maintaining an “equal weight” rating, reflecting a more cautious outlook despite implied upside from the stock’s prior close.
• Sunrun shares fell 4.8% to $7.42, near their 52-week low of $7.22 and below both the 50-day and 200-day moving averages, signaling continued technical weakness.
• Analyst views remain mixed: the consensus rating is “Hold” with a $15.20 target price, while Sunrun’s latest quarter beat estimates on earnings and revenue, including 52.8% year-over-year revenue growth.

Sunrun (NASDAQ:RUN - Get Free Report) had its price objective decreased by equities research analysts at Morgan Stanley from $15.00 to $10.00 in a research note issued on Wednesday, Benzinga reports. The brokerage presently has an "equal weight" rating on the energy company's stock. Morgan Stanley's price objective suggests a potential upside of 34.86% from the stock's previous close.

A number of other research firms also recently weighed in on RUN. Citigroup cut their price target on Sunrun from $16.00 to $14.00 and set a "buy" rating for the company in a research note on Friday, October 9th. Wall Street Zen cut Sunrun from a "hold" rating to a "sell" rating in a research note on Saturday. The Goldman Sachs Group dropped their price objective on Sunrun from $13.00 to $11.00 and set a "buy" rating on the stock in a report on Thursday, October 8th. Weiss Ratings raised shares of Sunrun from a "sell (d)" rating to a "sell (d+)" rating in a research report on Friday. Finally, Glj Research reiterated a "sell" rating and issued a $4.63 target price on shares of Sunrun in a research note on Monday, August 17th. Twelve equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $15.20.

Sunrun Stock Down 4.8%

Shares of NASDAQ:RUN traded down $0.38 during mid-day trading on Wednesday, hitting $7.42. 2,753,769 shares of the company traded hands, compared to its average volume of 9,211,629. The firm has a market cap of $1.79 billion, a P/E ratio of 4.97 and a beta of 2.44. The company has a debt-to-equity ratio of 3.34, a quick ratio of 1.00 and a current ratio of 1.42. Sunrun has a 52-week low of $7.22 and a 52-week high of $22.44. The firm's 50 day simple moving average is $8.73 and its 200 day simple moving average is $11.45.

Sunrun (NASDAQ:RUN - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The energy company reported $0.42 EPS for the quarter, topping analysts' consensus estimates of $0.23 by $0.19. Sunrun had a net margin of 11.59% and a return on equity of 9.59%. The firm had revenue of $869.99 million for the quarter, compared to analyst estimates of $746.87 million. During the same quarter in the previous year, the business posted $1.07 EPS. The firm's revenue was up 52.8% compared to the same quarter last year. On average, equities analysts anticipate that Sunrun will post 1.16 EPS for the current year.

Insiders Place Their Bets

In other Sunrun news, CEO Mary Powell sold 24,335 shares of the business's stock in a transaction dated Tuesday, October 6th. The shares were sold at an average price of $7.76, for a total value of $188,839.60. Following the completion of the sale, the chief executive officer owned 1,087,200 shares of the company's stock, valued at $8,436,672. The trade was a 2.19% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Jeanna Steele sold 10,042 shares of the stock in a transaction that occurred on Tuesday, October 6th. The stock was sold at an average price of $7.76, for a total transaction of $77,925.92. Following the transaction, the insider owned 451,673 shares in the company, valued at approximately $3,504,982.48. The trade was a 2.17% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 118,719 shares of company stock worth $1,031,277 in the last three months. 3.55% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Sunrun

Large investors have recently added to or reduced their stakes in the stock. B. Riley Wealth Advisors Inc. boosted its position in Sunrun by 33.1% during the third quarter. B. Riley Wealth Advisors Inc. now owns 40,264 shares of the energy company's stock valued at $313,000 after buying an additional 10,014 shares during the period. Green Alpha Advisors LLC increased its stake in shares of Sunrun by 19.6% during the third quarter. Green Alpha Advisors LLC now owns 61,097 shares of the energy company's stock valued at $475,000 after purchasing an additional 10,025 shares in the last quarter. U S Wealth Group LLC. boosted its holdings in Sunrun by 23.1% in the second quarter. U S Wealth Group LLC. now owns 95,946 shares of the energy company's stock worth $1,284,000 after acquiring an additional 18,006 shares in the last quarter. Sequoia Financial Advisors LLC purchased a new stake in Sunrun during the 2nd quarter valued at about $594,000. Finally, Engineers Gate Manager LP purchased a new position in Sunrun in the 2nd quarter worth approximately $328,000. Institutional investors and hedge funds own 91.69% of the company's stock.

Sunrun News Summary

Here are the key news stories impacting Sunrun this week:

• Positive Sentiment: Sunrun reported record residential battery discharges of 669 megawatts on October 5 and 745 megawatts on October 6 during a California heat wave. The company said the dispatches helped utilities manage evening peak demand, demonstrating the value of its home-to-grid battery network and potentially strengthening its role in grid-services revenue. Sunrun Leads Record Grid Dispatch Delivering Enough Energy to Power Every Home in San Francisco and San Jose
• Positive Sentiment: California initiatives designed to contain rising electricity bills and expand virtual power plants are expected to benefit Sunrun, Tesla, Enphase Energy and Renew Home. Supportive state policies could increase demand for residential batteries and create additional opportunities for customer-sited energy resources. California Boosts Virtual Power Plants; These Clean Energy Players Benefit
• Neutral Sentiment: Susquehanna maintained a positive rating on Sunrun but lowered its price target from $15 to $13. The revised target still implies substantial upside from the stock’s $7.40 level, although the reduction signals more cautious expectations. Sunrun Price Target Update
• Neutral Sentiment: A Zacks article highlighted its Earnings ESP tool as a way to identify companies that could beat quarterly estimates, but it did not provide a specific new earnings forecast or fundamental update for Sunrun. Why Investors Need to Take Advantage of These 2 Oils and Energy Stocks Now
• Negative Sentiment: Sunrun remains well below its 50-day and 200-day moving averages and close to its 52-week low, indicating persistent technical weakness despite the recent California-related catalysts. Broader solar-sector tariff concerns also left Sunrun largely unchanged while some peers benefited. First Solar Climbs as Tariff Outlook Shifts

About Sunrun

Sunrun Inc is a residential solar energy company that designs, installs, owns and maintains solar energy systems for homeowners. The company typically provides electricity through long-term agreements, including solar leases and power purchase agreements, allowing customers to use electricity generated by rooftop solar systems without purchasing the equipment outright.

Sunrun also offers energy storage solutions, including its BrightBox battery system, which can store electricity for use during outages, periods of high demand or when solar generation is unavailable.

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