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Sunrun new Toll pact a potential offset to Costco headwinds, says Morgan Stanley

After Sunrun (RUN) announced a partnership that will make it an exclusive provider of solar power to all Toll Brother (TOL) homes in California and a preferred provider of solar power to Toll Brother divisions nationwide, Morgan Stanley analyst Andrew Percoco said the firm views this deal as an early sign of success as Sunrun begins to leverage its recent talent acquisition from SunPower’s New Homes business. The new partnership is also a potential offset to headwinds introduced from the phasedown of Sunrun’s partnership with Costco (COST), added the analyst, who has an Overweight rating and $35 price target on Sunrun shares.

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