Why Sunrun (RUN) Stock Is Jumping Today

Aug 18 - Sunrun RUN rallied 10% on Monday after RBC Capital upgraded the stock to Outperform and raised its price target to $16 from $12, citing clearer Treasury guidance on Investment Tax Credit (ITC) commence-construction rules. The upgrade helped spark sector momentum and pushed buyers back into RUN, which has already logged strong year-to-date gains.

RBC's analyst Christopher Dendrinos argued the guidance de-risks Sunrun's long-term growth assumptions and supports a multiple re-rating. The upgrade followed Sunrun's Aug. 5 quarterly report, which beat consensus: revenue totaled $569.3 million versus $559 million expected, and the company highlighted stronger contracted value and improving unit economics. Other firms followed suit, Mizuho kept an Outperform view and lifted its target, UBS raised its target to $16, and Wells Fargo raised its target to $14, amplifying the buying interest.

Analysts warn Sunrun still runs meaningful leverage and faces cash-burn risk, so upgrades come with caveats about financing costs and execution. For now, clearer tax-credit rules and upgraded analyst assumptions explain the latest spike; investors should track financing spreads, deployment cadence and any further regulatory clarifications to judge sustainability.