Sunrun (RUN) Gains Momentum with RBC Upgrade and Regulatory Clarity

Sunrun Inc. (NASDAQ:RUN) is one of the best alternative energy stocks to buy right now. On August 18, RBC Capital upgraded Sunrun from Sector Perform to Outperform and raised its price target from $12 to $16.

The move reflects RBC’s confidence in Sunrun’s long-term prospects, driven by clearer U.S. Treasury guidance and favorable changes to OB3 regulations. These updates, along with clarified rules for the Investment Tax Credit (ITC) and Production Tax Credit (PTC), reduce uncertainty and strengthen Sunrun’s business model.

RBC analyst Christopher Dendrinos highlighted that the revised outlook supports a projected 15% cash generation yield by 2026, consistent with Sunrun’s historical performance. The upgrade signals a rerating opportunity for the stock, as regulatory clarity enhances its growth trajectory and overall value proposition.

Sunrun Inc. (NASDAQ:RUN) specializes in residential solar energy solutions, handling everything from design and development to installation, sales, ownership, and maintenance. The company delivers its offerings through three key channels: direct-to-consumer sales, solar partnerships, and strategic collaborations.

While we acknowledge the potential of RUN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.