What Happened?

Shares of residential solar energy company Sunrun (NASDAQ: RUN) jumped 5.2% in the morning session after RBC Capital raised its price target on the stock. The investment bank increased its target to $22 per share, up from the previous target of $16. Alongside the new price target, RBC also kept its 'Outperform' rating on the shares. This action signaled the analyst's positive view of the company's future performance, with the new target suggesting a belief in significant potential upside from its prior trading levels.

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What Is The Market Telling Us

Sunrun’s shares are extremely volatile and have had 79 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 5 days ago when the stock gained 2.8% on the news that BMO Capital upgraded the stock to "Market Perform" from "Underperform" and nearly doubled its price target. The firm raised its price target on the solar company's shares to $19 from $10. The analyst noted that Sunrun might reach a level of cash generation in 2026 that would allow it to consider share buybacks or start paying a dividend. This development signaled stronger financial flexibility and potential returns to shareholders. The upgrade followed a period of positive momentum for solar stocks, with Sunrun having received several analyst upgrades in the previous two months. Following the news, the stock touched a two-year high.

Sunrun is up 101% since the beginning of the year, and at $20.57 per share, it is trading close to its 52-week high of $21.29 from October 2025. Investors who bought $1,000 worth of Sunrun’s shares 5 years ago would now be looking at an investment worth $328.70.

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