Why Sunrun Stock Dimmed This Week
Key Points
This wasn't helped by an analyst's price target cut on the company's shares.
Yet despite the shave, the pundit maintained his bullish outlook.
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The sun might be shining more often lately, as we head into the warmer months, but we can't say the same for Sunrun (NASDAQ: RUN) stock. The residential solar energy specialist wasn't a favorite among investors over the past few days, in no small part due to an analyst's price target cut.
Over the course of the week, the company's stock fell by nearly 7%, according to data compiled by S&P Global Market Intelligence.
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Not in the currently cool category
That reduction was made by Mark Strouse of JPMorgan Chase unit JPMorgan on Thursday. Strouse clipped his fair value assessment on Sunrun stock to $22 per share from his previous $25. Despite that 12% haircut, he maintained his overweight (i.e., buy) recommendation on the company.
Image source: Getty Images.
According to reports, that cut was part of a broader reevaluation the analyst conducted on clean energy and power infrastructure stocks. Despite his adjustment on Sunrun, he expressed a generally bullish outlook on such companies, on the back of what he considers to be numerous catalysts that might juice their businesses.
Although Strouse is maintaining his positive view, investor attention has lately shifted from solutions like solar to other segments of the energy sector.
One that has captured headlines is nuclear; on Tuesday, the White House's Office of Science and Technology Policy (OSTP) issued a memorandum outlining in some detail how federal agencies should expand the country's presence in space. Among the items in the memorandum is a goal of deploying small nuclear reactors in orbit around our planet and on the Moon.
Solar sleepers?
In addition to nuclear stocks, oil companies were also in vogue when prices were rising during the Iran war. Many investors continue to ignore the solar sector, which makes it feel to me like a buying opportunity in these stocks. I think now might be a good time to be contrarian on them, and consider snapping up Sunrun and/or a few of its higher-potential peers.
Should you buy stock in Sunrun right now?
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JPMorgan Chase is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.
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