Sunrun (RUN) Jumps 6.2% as Analyst Bullish for 2026 Despite Industry Headwinds

We recently published 10 Firms Stealing the Show on Wall Street. Sunrun Inc. (NASDAQ:RUN) is one of the best performers on Thursday.

Sunrun grew its share prices by 6.21 percent to close at $18.14 apiece as investors took heart from an investment firm’s bullish outlook for next year despite headwinds from government policies.

In a market report, RBC Capital reaffirmed its “outperform” rating and $22 price target on Sunrun Inc. (NASDAQ:RUN) on the belief that the latter is set to benefit from the expiration of the section 25D tax credits by the end of the year. The figure marked a 21 percent upside potential from its latest closing price.

According to RBC Capital, Sunrun Inc. (NASDAQ:RUN) is poised to benefit from third-party ownership (TPO) or unit leasing systems, which its business is heavily focused on, as the tax credit expiration would drive more customers towards the adoption of its model.

At present, Sunrun Inc.’s (NASDAQ:RUN) non-TPO models, or those buying their units instead, only represent around 5 percent of the company’s customer additions, as compared with the 43 percent in the broader industry.

Under the One Big Beautiful Bill Act signed into law in July this year, homeowners have until December 31 to have their solar installations completed to qualify for the 30 percent 25D tax credits from the government. Installations completed after the deadline would no longer be eligible for the subsidy.

While we acknowledge the potential of RUN 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.