In a turbulent market environment, Sunrun Inc . (NASDAQ: ) stock touched a 52-week low, dropping to $9.01, with a current price of $9.04 and a market cap of $2.03 billion. InvestingPro analysis suggests that the stock is trading slightly below its fair value, with additional insights available through their comprehensive Pro Research Report. The residential solar company faced significant problems during the last year which reflected in the stock performance with a significant one year change showing a decline of -34.42%. The company’s revenue has fallen 13.46% over the last twelve months, although it maintains a healthy current ratio of 1.47. Investors have been cautious as the broader renewable energy sector grapples with policy uncertainties and supply chain constraints, factors that have contributed to pressure on Sunrun’s share price. Despite current lows, with shares trading at just 0.39 times book value, the market is closely watching for any signs of recovery or strategic changes that could signal a turnaround for the solar industry leader. InvestingPro subscribers can access 17 additional key insights about Sunrun’s financial health and market position.
In other recent news, Sunrun, a prominent player in the residential solar market, has been the focus of several analyst adjustments. UBS analyst Jon Windham upgraded Sunrun from Neutral to Buy, raising the price target to $17.00. He cited Sunrun’s significant growth in market share in California and the increasing use of battery storage in new projects as reasons for the positive outlook. On the other hand, Clear Street cut its price target on Sunrun shares to $23 from $25, reflecting a cautious but still optimistic view of the company’s prospects amid external uncertainties.
In addition, Sunrun announced a reshuffle of its board of directors with the departure of Gerald Risk and the appointment of John Trinta as the new chairman of the audit committee. TD Cowen initiated coverage on Sunrun with a Buy rating, expressing confidence in the company’s cash-generating goals. However, other firms, including Piper Sandler, Truist Securities and BMO Capital Markets, adjusted their views on the company, citing concerns about its cash generation potential and political risks.
In terms of performance, Sunrun reported strong results in the third quarter, hitting the milestone of 1 million users and a record number of storage installations. The company’s annual recurring revenue exceeded $1.5 billion, an increase of 22% over the previous year, and 336 megawatt hours of storage were installed, an increase of 92% over the previous year. Looking ahead, Sunrun projects cash generation of $50 million to $125 million next quarter and $350 million to $600 million in 2025. The company also anticipates installing 320 to 350 megawatt-hours of storage and 240 to 250 megawatts of solar capacity.
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