Sunrun Stock Shines on Fresh Analyst Bull Note

Sentiment surrounding RUN has been overwhelmingly bullish of late

Deputy Editor
Apr 7, 2021 at 8:55 AM
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The shares are Sunrun Inc (NASDAQ:RUN) are up 2% at $57.35 this morning after RBC initiated coverage on the solar energy name with an "outperform" rating, and an $81 price target. RBC's fresh price target represents a 44.1% premium to last night's close.

The analyst joins an already bullish brokerage bunch. Of the 12 in coverage, coming into today, 10 called RUN a "buy" or better, while only two said "hold." What's more, the 12-month consensus price target stands all the way up at $81.17.

SunRun has several technical barriers it needs to topple before it can fulfil Wall Street's estimates. The security is down roughly 18% this year, with overhead pressure from the 120-day moving average keeping a lid on the shares. More recently, the stock has been struggling to overtake its 20-day moving average, though it looks like today's pop could put RUN well over the trendline. 

Bullish sentiment pervades in the options pits too. In fact, at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), RUN sports a 10-day call/put volume ratio of 5.48, which stands higher than 81% of readings from the past year. This means calls are being picked up at a quicker-than-usual clip. 

Short interest is beginning to unwind on Sunrun, though it looks like these bears are still firmly in control. Short interest dropped 3.8% in the last two reporting periods, and the 27.32 million shares sold short make up a solid 23.7% of the stock's available float, or nearly a weeks' worth of pent-up buying power, at RUN's average pace of trading. Should these shorts continue to jump ship, it could put some additional wind at the equity's back. 

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