Janney upgrades Sunrun to Buy on execution and margin performance

As previously reported, Janney Montgomery Scott analyst Thomas Meric upgraded Sunrun to Buy from Neutral with a $32 fair value estimate following what it calls “an operationally solid quarter.” While acknowleding there is “a high level of market pessimism on residential solar currently,” the firm cites several reasons for the upgrade, including Sunrun gaining market share from small and large competitors and the fact that its margins are expanding through higher battery attach rates, ITC adders and lower component pricing. Despite a volatile solar market, the company is executing on its plan and the firm expects “this continued steadiness will come through over the next several quarters in customers additions and margins,” the analyst tells investors.