Please ensure Javascript is enabled for purposes of website accessibility

Why Sunrun Stock Surged Today

By Joe Tenebruso - Jun 17, 2021 at 4:43PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A respected investment bank named the solar panel leader the "most compelling clean energy stock."

What happened 

Shares of Sunrun (RUN 3.43%) 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.

The sun is shining on solar panels on the roof of a home.

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.

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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Sunrun Inc. Stock Quote
Sunrun Inc.
$35.01 (3.43%) $1.16

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/18/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.