As previously reported, GLJ Research analyst Gordon Johnson downgraded Sunrun (RUN) to Sell from Hold with a 1c price target following the firm’s analysis of Sunnova Energy’s (NOVA) “hidden ‘second set of books'” and the Senate’s tax-and-spend bill language. Barring SunRun’s ability to inflate the value of its solar systems to collect tax credits, the “underlying equity is worthless,” argues the analyst, who notes that the firm’s target implies 99% downside from yesterday’s closing price.
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Read More on RUN:
- Sunrun downgraded to Sell from Hold at GLJ Research
- Guggenheim says Senate draft tax language ‘quite negative’ for residential solar
- Sunrun to trade toward ‘bear case’ if SenFin language holds, says Morgan Stanley
- Closing Bell Movers: Solar stocks fall on tax credit threat
- Senate tax committee offers solar/wind tax credit phase-out, Reuters says