Guggenheim upgraded Sunrun Inc. (NASDAQ: RUN) from Neutral to Buy with a price target of $27.00, saying the recent selloff in the stock created an attractive entry opportunity amid improving cash generation and capital return potential. Shares rose more than 7% in intra-day trading on Monday.
The firm said Sunrun’s third-quarter 2025 results demonstrated solid business execution in a difficult solar industry environment, underscoring the company’s ability to manage operations efficiently. Guggenheim added that prospects for consistent cash flow generation and future shareholder returns were improving.
Analysts highlighted the 16% drop in Sunrun’s shares last Friday—compared with a 0.13% rise in the S&P 500—as an overreaction to modest capacity additions, calling the decline “excessive.”
The new valuation was based on a two-stage discounted cash flow model centered on expected cash generation, replacing the firm’s previous approach focused on net earning asset growth. Guggenheim reiterated that Sunrun’s financial fundamentals were strengthening despite industry challenges.
