Sunrun stock saw a rise on Wednesday following an upgrade from Citi analyst Vikram Bagri. Despite a challenging year, Bagri expressed confidence in the residential solar panel company’s ability to navigate a volatile market and gain market share. He upgraded Sunrun shares from Neutral to Buy, although he did lower the price target from $25 to $21.
The stock faced difficulties throughout the year, with a 34% drop in 2023 due to regulatory changes in the California market. Homeowners now receive less money for the excess power their solar panels generate. Additionally, higher interest rates have made financing large purchases more expensive for borrowers.
However, Sunrun surprised investors with a profit in the second quarter of this year. CEO Mary Powell stated that demand outside of California remains robust. Bagri believes that the impact of higher rates and net energy metering (NEM) changes are already priced into the stock.
As a result of this positive news, shares of Sunrun rose by 5.1% on Wednesday, reaching $15.93.