Citi upgrades Sunrun to Buy, says headwinds priced in

Citi analyst Vikram Bagri upgraded Sunrun to Buy from Neutral with a price target of $21, down from $25. While headwinds from higher interest rates and net energy metering impacts appear to be largely priced into the shares, Sunrun is not getting due credit for its market share gains from third party owner shift, path to free cash flow generation, no corporate level equity raises, projected component cost deflation, and success in selling battery storage, the analyst tells investors in a research note. Citi also believes there is upside to net subscriber value estimates. It believes the stock is “conservatively worth” $21 per share in the long term.