Truist doesn’t see significant financial impact to Sunrun from Costco break-up

After Sunrun (RUN) issued a statement yesterday, noting the mutual termination of the company’s sales partnership with Costco (COST) after the two failed to come to mutually agreeable terms for a continuation of the partnership, Truist noted that Sunrun said it plans to reposition a significant portion of its Costco sales reps to other retail/sales channels, including an expansion of the Lowe’s (LOW) footprint established earlier this year. Given that Costco sales constituted less than 10% of first half of 2024 volumes for Sunrun, with likely a higher weighting of cash/loan purchases at lower storage attach rates, the firm does not expect to sees any significant financial impact, says Truist, which has a Hold rating and $18 price target on Sunrun shares.