Oversold, Sunrun Inc. (RUN) is showing signs of life at double bottom support.
All after Piper Jaffray analyst Kashy Harrison upgraded the stock to Overweight from Neutral with a $77 price target.
He says most solar stocks have been under pressure for the last few months with rising interest rates, regulatory uncertainty with net energy metering in California, and a lack of immediate-term catalysts. He added the pullback in the sector has been a “head-scratcher,” as quoted by The Fly, “since yields have recently moved lower and the market has gained more visibility on long-term federal policy support.”
We also have to Joe Biden has laid out a $2 trillion clean energy infrastructure plan, with hopes for net zero emissions by 2050. In addition, he has said he wants to “upgrade four million buildings and two million homes over four years to meet new energy efficiency standards,” as noted by The Conversation.
The U.S. has also pledged to cut solar energy costs by up to 60% in a decade.
“The U.S. Department of Energy said the goal accelerates its previous utility-scale solar cost target by five years. For the U.S. power grid to run entirely on clean energy within 15 years,” reports Reuters. “To get there, the agency committed to spending $128 million on technologies including perovskite solar cells, which are regarded as a promising cheap alternative to the silicon cells that dominate the market. Funds will also support research on cadmium telluride and concentrating solar technologies.”
With a bright future ahead, solar stocks, like RUN could recover well, with patience.