RBC Capital Upgrades Sunrun (RUN) to Outperform, Raises Price Target

Sunrun Inc. (NASDAQ:RUN) is one of the 10 Hot Mid Cap Stocks to Buy Now. On August 18, RBC Capital upgraded Sunrun Inc.’s (NASDAQ:RUN) rating from Sector Perform to Outperform and increased the price target from $12 to $16.

RBC Capital sees more certainty about Sunrun Inc.’s (NASDAQ:RUN) long-term opportunities after treasury guidance clarification.

The firm pointed out that changes to the OB3 guidance help Sunrun Inc.’s (NASDAQ:RUN) business model. Additionally, clearer rules about starting construction for the Investment Tax Credit (ITC) and Production Tax Credit (PTC) lower the risks in the company’s future growth outlook and value proposition.

The increased price target of $16 implies about a 15% cash generation yield to 2026. RBC Capital believes this is in line with Sunrun Inc.’s (NASDAQ:RUN) historical range.

RBC Capital upgraded the rating after reviewing how the company’s business outlook improved after the updated regulatory information.

Sunrun Inc. (NASDAQ:RUN) is an American residential solar panel and battery storage company.

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