Barclays downgrades Sunrun and Sunpower
Barclays Downgrade Sunrun Co., Ltd. (NASDAQ:RUN) When SunPower Corporation (NASDAQ:SPWR) We noted this morning that we expect growth in residential solar companies to slow in 2023 and 2024. Wall Street brokers are particularly wary of Sunrun and SunPower. His 50% of growth for both companies comes from there.
Analysts in the press downgraded RUN from ‘overweight’ to ‘equal weight’ and lowered the target price from $44 to $35. There is also room for analyst optimism to unwind, with 14 out of 17 articles recommending a ‘buy’ or better. SPWR was downgraded from “equal weight” to “low weight” and the price target was lowered from $26 to $18. Contrary to their peers, the majority of analysts are pessimistic about SunPower’s stock, with 14 out of 16 rating it a Hold or worse.
Following the downgrade, Sunrun shares are down 4.4% and are trading at $24.95 before open. If sustained, this negative price action will bring RUN closer to breakeven year-to-date, adding to its 3.5% year-over-year loss. SunPower shares are down 5.3%, trading at $15.36 premarket. The stock has a modest 12-month loss, but it could add to its massive 10% year-to-date loss.