Sunrun downgraded to Neutral at Janney on demand uncertainty

As previously reported, Janney Montgomery Scott downgraded Sunrun to Neutral from Buy with a fair value estimate of $13, down from $20. The firm’s revised stance on shares reflects the view that U.S. residential solar demand is more uncertain than current expectations; tailwinds of lower equipment costs and higher ITC adders will be more subdued than previously expected; its view that the near-term translation of this potential demand will be more muted than the math appears on paper; and the contention that valuation and trading multiples are likely to remain depressed and below net earning assets for the near term. While the firm remains bullish on margins moving higher, it is “less confident in demand,” the analyst tells investors.