Sunrun's Offensive Play Supports 2027 Customer, Cash Growth Recovery, RBC Says

MT Newswires Live05-12

Sunrun's (RUN) decision to play offense despite industry challenges positions it to resume customer and cash generation growth in 2027, RBC Capital Markets said in a Monday note.

Industry challenges create an opportunity for the company to leverage its third-party ownership model and expand its direct sales channel, with total customer additions expected to inflect in H2.

RBC said improvements in tax credit transfer pricing could provide upside to cash generation, with each cent translating into about $25 million in cash flow, supporting potential upside to the company's 2026 outlook.

Sunrun is benefiting from larger systems and higher storage attach rates, offset by its monetization strategy and elevated customer acquisition costs, but customer value is expected to improve as the direct business scales, according to the note.

RBC reiterated its $18 price target on the stock, with an outperform rating.

Price: 14.65, Change: +0.04, Percent Change: +0.27

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