A contractor carries a SunRun solar panel onto the roof of a home in San Jose, California, U.S., Monday, Feb. 7, 2022.
David Paul Morris | Bloomberg | Getty Images
Sun Run Shares of the company jumped about 14% on Wednesday as the rooftop solar panel installer saw an opportunity to grab market share from rivals Sun power It declared bankruptcy this week.
Sunrun CEO Mary Powell said the company is in talks with several former SunPower dealers and is bringing some on as partners.
“This represents an opportunity for Sunrun to continue its industry leadership and gain share in a disciplined, financially prudent manner,” Powell told analysts on the company’s second-quarter earnings call on Tuesday.
SunPower Inc. filed for bankruptcy on Monday after months of struggling with high interest rates and allegations of misconduct in its reporting practices. The bankruptcy comes after SunPower halted leasing, installation and shipments of new products in July.
Sunrun has appointed two former SunPower executives, Matt Brust and Ellen Strack, to lead the company's new homes business.
“We expect strategic growth in new housing starts in the coming quarters,” Powell said.
SunRun Inc. posted a surprise second-quarter profit and also beat Wall Street expectations on revenue. The company provided guidance for cash generation of $350 million to $600 million for 2025.
Goldman Sachs raised its 12-month price target on Sunrun stock by $2 to $20 per share, implying a 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 said in a note to clients on Wednesday.
Sunrun shares have risen 55% over the past month, though its shares are down about 4% so far this year. Invesco Solar Energy Fund (TAN)By contrast, GDP rose about 2% last month and has fallen about 24% this year.
