Sunrun price target lowered to $27 from $31 at Piper Sandler

Piper Sandler analyst Kashy Harrison lowered the firm’s price target on Sunrun to $27 from $31 and keeps an Overweight rating on the shares. Investors resonated with Sunrun’s levered cash generation story into the print and accordingly, the firm believes the bar for success was fairly high. Sunrun’s update screens as mixed to Piper. On the one hand, levered cash generation guidance was unchanged, solar MW guidance was favorable vs. broader market expectations, storage attachment rates keep rising, Sunrun is seeing strong quarter-over-quarter Q1 sales growth, and early renewal pilot results sounded promising. However, Q1 installs were light and installation guidance is more back-end weighted vs. 2021/2022, the firm adds. Finally, Sunrun surprised equity markets with an early convert refinancing transaction, Piper notes.