Sunrun stock surges as it sees opportunity after SunPower files for bankruptcy

A contractor carries a SunRun solar panel on the roof of a home in San Jose, California, U.S., on Monday, Feb. 7, 2022. 

David Paul Morris | Bloomberg | Getty Images

Sunrun stock jumped nearly 14% Wednesday as the rooftop solar installer sees an opportunity to snag market share after competitor SunPower filed for bankruptcy this week.

Sunrun CEO Mary Powell said the company is having conversations with many of SunPower’s former dealers and is bringing some of them on as partners.

“This presents an opportunity for Sunrun to continue our industry leadership and gain share in a financially disciplined and measured way,” Powell told analysts on the company’s second-quarter earnings call Tuesday.

SunPower filed for bankruptcy on Monday as the company has struggled for months in the face of high interest rates and allegations of misconduct in its reporting practices. The bankruptcy comes after SunPower halted new leases, installations and product shipments in July.

Sunrun has hired two former SunPower executives, Matt Brost and Ellen Struck, to lead the company’s new homes business.

“We expect strategic growth in the new homes segment in the coming quarters,” Powell said.

Sunrun posted a surprise profit for the second quarter and also beat Wall Street’s revenue expectations. The company introduced cash generation guidance of $350 million to $600 million for 2025.

Goldman Sachs raised its 12-month stock price target for Sunrun by $2 to $20 per share, implying 21% upside from Tuesday’s close of $16.49.

“Looking ahead, we expect this strong cash flow to support continued market share gains,” Goldman Sachs analyst Brian Lee told clients in a note Wednesday.

Sunrun’s stock is up 55% over the past month, though shares are down about 4% so far this year. The Invesco Solar ETF (TAN), by contrast, is up nearly 2% over the past month and down about 24% this year.

FOLLOW US ON GOOGLE NEWS

Read original article here

Denial of responsibility! Todays Chronic is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – todayschronic.com. The content will be deleted within 24 hours.

Leave a Comment