Sunrun (SUN) Shines 7.6% Brighter as Analyst Triggers 'Buy' Reco

We recently published 10 Stocks on a Hot Streak. Sunrun Inc. (NASDAQ:SUN) is one of the best-performing stocks on Tuesday.

Sunrun rallied for a second day on Tuesday, jumping 7.63 percent to close at $19.75 apiece as investors took path from an investment firm’s bullish comment and recommendation for its stock.

In a market note on Monday, Guggenheim Securities upgraded Sunrun Inc. (NASDAQ:SUN) to “buy” from “neutral,” with a $27 price target, marking a 36.7 percent upside potential from its latest closing price.

The revision was based on solid growth prospects for next year, alongside the stock’s recent weakness, which has provided an attractive entry point for investors.

Additionally, Guggenheim believed that Sunrun Inc. (NASDAQ:SUN) has effectively managed its business in a profoundly challenged industry, having swung to profitability in the third quarter of the year.

During the period, Sunrun Inc. (NASDAQ:SUN) incurred a net income attributable to shareholders of $16.5 million, reversing a $83.8 million attributable net loss in the same period last year.

Total revenues increased by 34.8 percent to $724 million from $537 million year-on-year, on the back of higher revenues from customer agreements and incentives, as well as solar energy systems and product sales.

While we acknowledge the potential of SUN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, 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.