Wolfe Research downgrades Sunrun’s shares to Peer Perform

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Sunrun Inc ($NASDAQ:RUN). is a provider of residential solar energy services in the United States. The company offers solar energy systems to homeowners for little to no upfront cost. Customers make monthly payments to Sunrun for the electricity that their solar system produces, and they may also receive a bill from their utility company for the net amount of electricity they consume each month. Solar energy has been one of the fastest growing industries in the United States in recent years, and Sunrun has been one of the leading companies in the space.

However, the solar industry is facing some headwinds in the form of a rising interest rate environment. This is making it more difficult for solar companies to finance their operations and expand their businesses. Sunrun’s stock fell 1.2% in Thursday’s trading after Wolfe Research downgraded the company’s shares to Peer Perform from Outperform. The analyst cited headwinds from a rising interest rate environment and said that he prefers distributed solar suppliers such as Enphase Energy, which are less exposed to financing pressure dynamics. The effect of rising interest rates on financing costs and valuations is “tough to ignore” even with strong demand coming from the Inflation Reduction Act and rising utility rates, Wolfe analyst Steven Fleishman said in a note to clients.

Price History

The research firm cited concerns about the company’s competitive position and execution risk. The company has been growing rapidly in recent years, thanks to increasing consumer demand for solar energy.

However, Wolfe Research believes that Sunrun faces significant competitive pressures from larger players in the solar industry, such as Tesla and First Solar. The research firm also believes that Sunrun faces execution risks, given its rapid growth. Shares of Sunrun fell sharply on the news, opening at $19.8 and closing at $19.7. This is a 3.6% decline from the prior closing price of $20.4.

VI Analysis

SUNRUN INC is a high risk investment according to VI app’s risk rating. The app has detected 4 risk warnings in income sheet, balance sheet, cashflow statement, and non financial aspects. Register on vi.app to check it out.

VI Peers

The solar industry is highly competitive, with companies constantly vying for market share. Sunrun Inc is one of the leading solar companies, and its main competitors are Canadian Solar Inc, SolarEdge Technologies Inc, and Enphase Energy Inc. All of these companies are fighting for a piece of the pie, and each has its own unique strengths and weaknesses.

– Canadian Solar Inc ($NASDAQ:CSIQ)

As of 2022, Canadian Solar Inc has a market cap of 1.95B and a Return on Equity of 9.55%. The company is a leading manufacturer of solar photovoltaic modules and provider of solar energy solutions. It has a strong presence in the global solar market with a manufacturing capacity of 2.4 GW and sales operations in over 70 countries. Canadian Solar is committed to providing high-quality solar products and services to customers around the world.

– SolarEdge Technologies Inc ($NASDAQ:SEDG)

SolarEdge Technologies Inc is a provider of solar power harvesting and monitoring solutions. The company’s market cap as of 2022 is 11.28B and its ROE is 8.11%. SolarEdge’s solutions enable the maximization of solar power generation while minimizing the cost of energy for residential, commercial, and utility-scale customers.

– Enphase Energy Inc ($NASDAQ:ENPH)

Enphase Energy Inc is a publicly traded company that designs, manufactures and sells microinverters for the solar photovoltaic industry. It has a market capitalization of $34.14 billion as of 2022 and a return on equity of 58.92%. The company’s products are used in residential, commercial and utility-scale solar photovoltaic systems. Enphase Energy was founded in 2006 and is headquartered in Fremont, California.

Summary

When considering investing in SUNRUN INC, it is important to look at the company’s financial stability and recent performance. The company’s stock price has been volatile in recent months, so it is important to monitor the stock before investing. In addition, it is important to research the company’s business model and competitive landscape to get a better understanding of the risks and opportunities associated with investing in SUNRUN INC.