Truist Securities Reiterates Hold Rating on Sunrun (RUN)

Truist Securities analyst Jordan Levy reiterated a Hold rating and $18.00 price target on Sunrun (NASDAQ: RUN).

The analyst commented: "This afternoon, Sunrun (Hold) issued a statement noting the mutual termination of the company's sales partnership with Costco (COST, Buy, Ciccarelli) after the two failed to come to mutually agreeable terms for a continuation of the partnership. As noted in the statement, while RUN is focused on its subscription (lease/PPA) customers, Costco receives lower upfront revenue recognition from subscription vs. loan/upfront cash purchases likely amounting to a misalignment of objectives between the two companies. RUN noted plans to reposition a significant portion of its Costco sales reps to other retail/sales channels incl. an expansion of RUN's Lowe's (LOW, Buy, Ciccarelli) footprint established earlier this year in which the company is actively promoting its subscription offering. In addition to lower customer mix on lease, the company also noted battery attach rates are generally lower when compared to other routes to market. Ultimately, given Costco sales constituted <10% of 1H24 volumes for RUN w/likely a higher weighting of cash/loan purchases at lower storage attach, we don't expect to any significant financial impact."

For an analyst ratings summary and ratings history on Sunrun click here. For more ratings news on Sunrun click here.

Shares of Sunrun closed at $20.30 yesterday.

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