A contractor carries a SunRun solar panel onto the roof of a house in San Jose, California, Monday, February 7, 2022.
David Paul Morris | Bloomberg |
Sun course The stock rose nearly 14% on Wednesday because the rooftop solar installer sees a chance to capture market share after its competitor Solar power filed for bankruptcy this week.
Sunrun CEO Mary Powell said the corporate is in talks with many former SunPower dealers and is bringing a few of them on as partners.
“This provides Sunrun with an opportunity to extend our industry leadership and gain market share in a financially disciplined and measured manner,” Powell told analysts on Tuesday throughout the company’s second-quarter earnings conference call.
SunPower filed for bankruptcy on Monday after struggling for months with high rates of interest and allegations of misreporting. The bankruptcy got here after SunPower halted recent leases, installations and product deliveries in July.
Sunrun has hired two former SunPower executives, Matt Brost and Ellen Struck, to guide the corporate’s recent construction business.
“We expect strategic growth in the new build segment in the coming quarters,” said Powell.
Sunrun reported a surprise profit for the second quarter and in addition beat Wall Street’s revenue expectations. The company provided money generation guidance of $350 million to $600 million for 2025.
Goldman Sachs raised its 12-month price goal for Sunrun by $2 to $20 per share, representing 21 percent upside from Tuesday’s closing price of $16.49.
“Looking ahead, we expect this strong cash flow to support further market share gains,” Goldman Sachs analyst Brian Lee told clients in a note on Wednesday.
Sunrun shares have risen 55% previously month, although they’ve fallen about 4% thus far this 12 months. Invesco Solar ETF (TAN)has risen nearly 2% within the last month and fallen about 24% this 12 months.
