Barclays downgraded Sunrun and SunPower
Barclays downgraded Sunrun Inc (NASDAQ:RUN) and SunPower Corporation (NASDAQ:SPWR) this morning, noting it expects growth for residential solar companies to slowdown in 2023 and 2024. The Wall Street broker is especially wary of Sunrun and SunPower, both of which could face headwinds following the withdrawal of a rooftop solar incentive in California -- where roughly 50% of both companies' growth stems from.
The analyst in coverage downgraded RUN to "equal weight" from "overweight" and cut its target price to $35 from $44. There's room for analysts' optimism to unwind too, considering 14 of 17 in coverage recommend a "buy" or better. SPWR was downgraded to "underweight" from "equal weight," with a price-target cut to $18 from $26. Conversely to its sector peer, the majority of analysts are pessimistic towards SunPower stock, with 14 of 16 rating it a "hold" or worse.
In response to the downgrade, Sunrun stock is 4.4% lower to trade at $24.95 before the opening bell. Should it hold, this negative price action will drag RUN closer to its year-to-date breakeven mark, and add to its 3.5% year-over-year deficit. SunPower stock is down 5.3%, trading at $15.36 premarket. The shares sport a marginal 12-month deficit, but could potentially add to an already significant 10% year-to-date loss