What Happened?
Shares of residential solar energy company Sunrun (NASDAQ: RUN) jumped 9.7% in the afternoon session after an analyst at Susquehanna significantly raised the price target on the stock. The firm's analyst, Biju Perincheril, maintained a "Positive" rating on the company while lifting the price target to $23.00 from a previous $13.00. This substantial adjustment represented a 76.92% increase, signaling a much more optimistic outlook on the stock's future value from the financial firm.
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What Is The Market Telling Us
Sunrun’s shares are extremely volatile and have had 79 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 4 days ago when the stock gained 6.8% on the news that several analysts expressed increased confidence in the company, with both Goldman Sachs and Oppenheimer raising their price targets.
Goldman Sachs kept its "Buy" rating and lifted its price target on the stock to $21 from $19. In a similar move, Oppenheimer maintained its "Outperform" rating while increasing its price target to $23 from a previous $21. This string of positive analyst updates contributed to growing investor optimism, pushing the stock to a 52-week high during the trading session. The moves followed a pattern of recent positive ratings from other firms, which had also raised their price targets, signaling a broader positive sentiment for the residential solar company's market position and growth prospects.
Sunrun is up 102% since the beginning of the year, and at $20.64 per share, has set a new 52-week high. Investors who bought $1,000 worth of Sunrun’s shares 5 years ago would now be looking at an investment worth $315.76.
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