Sunrun Inc. (NASDAQ RUN) rose more than 15 percent on Wednesday, after SunPower Corporation filed for bankruptcy due to high interest rates.
SPWR was recently accused of financial misconduct, which led GLJ Research to declare SunPower’s stock worthless in July.
Sunrun is in the process of bringing on board some former SunPower dealers as new partners.
Sunrun’s chief executive Mary Powell said that the bankruptcy of SPWR was an opportunity to gain share “in a financial disciplined and measured manner”.
Sunrun has almost recovered its loss from the beginning of 2024.
Sunrun hires SPWR Executives
Sunrun hired Ellen Struck, Matt Brost and other former SunPower Corporation executives on Wednesday. Struck and Brost are now in charge of the company’s new home business.
Powell, CEO of Powell Homes told the analysts in a call held today that the company expects strategic growth for the segment new homes in the next quarters.
RUN also reported on Wednesday a surprising profit for the second quarter of its financial year.
The company’s revenues also exceeded Street expectations, giving it confidence that the cash flow will be between $350 and $650 million by 2025.
Sunrun has installed storage capacity of 265 Megawatt-hours in the second-quarter, up 152% from last year. The full Nasdaq earnings announcement can be found at this link.
Goldman Sachs raises price target on Sunrun stock
Sunrun’s cash generated in the last quarter was $217,000,000. According to the press release issued by the company on Wednesday, it will continue to focus on margins while launching products and services that “expand the customer lifetime value” over the next few months.
Goldman Sachs analyst Brian Lee cites the positive remarks made on the call as the reason for raising his target price for RUN from $20 to $20. This means that the company could see a further 5.0% increase.
Sunrun is expecting to continue to gain market share in the future due to SunPower’s bankruptcy and strong cash flows.
Other Wall Street analysts share Lee’s enthusiasm. Sunrun’s average price goal is currently $22, which represents a 16 percent increase from the current level. Even though RUN does not pay dividends, it is still a stock that investors are interested in.
The information in this post Sunrun Stock soars 15 % after SunPower bankruptcy: What You Need to Know may change as new developments unfold.
