What happened
Shares of Sunrun (RUN -2.43%) plunged by as much as 13.5% in trading on Wednesday due in part to a downgrade and general weakness in the market. As of 3:45 p.m. EDT, the stock was off its low for the session, but still down by 11.3%.
So what
Truist Securities analyst Tristan Richardson cut his price target for Sunrun from $116 per share to $95 per share. The firm maintained its buy rating on the stock.
Image source: Getty Images.
It didn't help that growth stocks and solar energy stocks were both down big Wednesday. The market seems to be taking the recent rise in interest rates and the potential for inflation more seriously, and that's hitting high-performing stocks.
Now what
I wouldn't read too much into Wednesday's move. Solar energy stocks have been volatile in 2021, so this drop could easily reverse soon -- especially since there wasn't any fundamental news about the company driving the shares lower. And keep in mind that this stock is up by nearly 200% over the last year, so a minor pullback could be healthy. There's no reason here to abandon any investment thesis for Sunrun.
