Analyst: Sunrun Stock's Valuation "Tough to Ignore"

J.P. Morgan Securities also cut its price target

Deputy Editor
Oct 20, 2022 at 9:36 AM
facebook X logo linkedin


The shares of Sunrun Inc (NASDAQ:RUN) are down 3.4% to trade at $19.71 this morning, after Wolfe Research downgraded the solar company to "peer perform" from "outperform." The analyst said headwinds on financing costs and the stock's valuation are "tough to ignore despite strong demand growth" from the Inflation Reduction Action legislation, adding that stable rate/credit markets are needed before the shares can be considered. 

In addition, J.P. Morgan Securities cut its price target to $55 from $65 but kept its "overweight" rating. The firm said it expects demand to remain strong, but lowered price targets across the board amid concerns regarding the overall economy. Coming into today, 12 of 15 still considered Sunrun stock a "buy" or better, while the 12-month consensus target price of $47.65 is a 140.9% premium to last night's close.

Should today's losses hold, RUN will log its lowest close since May 13. The shares have moved wildly over the last 10 months, though pressure from the long-term 320-day moving average has weighed for much of 2022, putting the shares at a 40.5% year-to-date deficit. 

In the options pits, the stock's 50-day put/call volume ratio of 0.91 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than 84% of readings from the last year. This means that though calls are still winning out on an absolute basis, the options pits have been much more bearish than usual. Echoing this, Sunrun stock's Schaeffer's put/call open interest ratio (SOIR) of 0.88 stands higher than 84% of annual readings. 

Should you want to speculate on the security with options, it's also worth noting the RUN's Schaeffer's Volatility Scorecard (SVS) ranks at a relatively high 94 out of 100. This suggests the stock has exceeded option traders' volatility expectations during the last year.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI