Sunrun rises as RBC raises to Buy following Treasury guidance clarification

[Solar panels on the tiled roof of the building in the sun. Top view through grape leaves. Image for illustration on energy, self-reliance, autonomy and security.]
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Sunrun (NASDAQ:RUN [https://seekingalpha.com/symbol/RUN]) +8.1% to a nine-month high in Monday's trading as RBC Capital upgraded the solar panel manufacturer to Outperform from Sector Perform with a $16 price target, raised from $12, following Friday's clarification of U.S. Treasury guidance [https://seekingalpha.com/news/4486232-solar-stocks-rise-as-trumps-tax-credit-guidance-less-stringent-than-feared] that firms up the longer-term outlook and business model.

RBC analyst Christopher Dendrinos said the guidance upgrade provides longer-term demand visibility and largely removes the uncertainty from President Trump's previous executive order calling for stricter Treasury guidance on enforcement of "commence construction" rules.

The updated guidance leaves safe harbor rules for residential solar largely unchanged, and while FEOC guidance has not yet been released, Dendrinos said this should not be particularly impactful for Sunrun (NASDAQ:RUN [https://seekingalpha.com/symbol/RUN]), since the company meets domestic content requirements for its installations and has visibility from its supplier that it can meet FEOC restrictions that will be implemented starting next year.

Dendrinos said Sunrun (NASDAQ:RUN [https://seekingalpha.com/symbol/RUN]) is poised to potentially gain overall market share with the termination of the 25D tax credit at year-end 2025 that should drive demand to the TPO market where the company is a market leader.

MORE ON SUNRUN

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* Sunrun: Securitizations And Subscriber Value May Not Be Enough [https://seekingalpha.com/article/4801149-sunrun-securitizations-and-subscriber-value-may-not-be-enough]
* Sunrun Q2 2025 Earnings Call Presentation [https://seekingalpha.com/article/4809791-sunrun-inc-2025-q2-results-earnings-call-presentation]