Sunrun price target lowered to $19 from $46 at Oppenheimer

Oppenheimer lowered the firm’s price target on Sunrun to $19 from $46 and keeps an Outperform rating on the shares. As Sunrun slows solar deployments and focuses on storage as a primary driver in order to optimize returns, the firm is adjusting estimates to reflect its most recent financing, strategy shift, and discounting its current portfolio at an 8% discount rate as its cost of capital continues to creep higher. While Oppenheimer sees Sunrun taking share and successfully pivoting to meet the needs of the market while improving the diversity of its capital sources, the firm expects the next year or two to see lower cash flow from refinancing and a transition in consumer understanding of renewables assets.