UBS Group has significantly lowered its price target for Sunrun (RUN, Financial), reducing it from $18 to $14. This action follows several other research firms downgrading the energy firm's forecasts in the past. The new target price indicates UBS's projection of a 21.21% upside for Sunrun at Wall Street's closing price. However, the downgrade comes with a neutral outlook on the company's stock due to concerns about its growth rate. Similarly, Morgan Stanley (MS, Financial) cut its target from $35 to $27, while Wells Fargo reduced it from $20 to $15. Despite these revisions, there are still some positive outlooks on the company's stock; Goldman Sachs has maintained a “buy” recommendation with a $20 price target.
Wall Street has had divergent views on Sunrun at different times. UBS analysts pointed to the company's slowdown in expansion and declining revenues, which led to a lower valuation. On the other hand, some firms, including Goldman Sachs ( GS, Financial), have remained bullish on Sunrun for the long term, suggesting that investors in the company's solar energy division are likely to remain steadfast despite short-term fluctuations.
Currently, Sunrun's stock holds a "Hold" rating, with predictions ranging from as low as $7.78 to as high as $27. However, other analysts remain positive about Sunrun's prospects, even as the solar energy sector becomes increasingly competitive.
