Send me real-time posts from this site at my email

Why Sunrun Stock Surged Today

What happened

Shares of Sunrun (NASDAQ: RUN) climbed 9.3% on Thursday, furthering the solar power company's recent gains.

So what

Yesterday, Morgan Stanley analyst Stephen Byrd pounded the table for Sunrun's stock. He reiterated his overweight rating for the residential solar developer and lifted his share price forecast from $86 to $91. "We view Sunrun as the most compelling clean energy stock we cover," Byrd said.

If he's correct, Byrd's new estimate would equate to returns of approximately 75% for investors, based on the stock's current price near $52.

Image source: Getty Images.

Byrd highlighted multiple trends that could help to propel Sunrun's revenue and profit growth, including:

  • increasing utility costs from traditional energy sources,
  • declining solar energy production and storage costs,
  • climate change and a corresponding rise in demand for clean energy from consumers.

Better still, Byrd sees the quickly expanding electric vehicle (EV) market as another powerful growth driver for Sunrun.

Now what

Solar accounted for more than half of all new electricity-generating capacity added in the U.S. in the first quarter, according to The Solar Energy Industries Association. That's likely to remain the case, as technological advances are expected to continue to drive solar power prices lower over time. The growth of the EV market should also boost demand for solar energy, as more EV owners install rooftop solar panels on their homes to help charge their vehicles.

As a leader in residential solar, Sunrun is particularly well-positioned to profit from these long-term trends.

10 stocks we like better than Sunrun
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now... and Sunrun wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of June 7, 2021

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.


Source

Popular posts

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue