Sunrun stock price has bounced back in the past few days as investors watch the progress on the Big Beautiful Bill (BBB) in the Senate and others go for bargain hunting. RUN share price jumped to $10 on Friday, up by 65% from its lowest level this month.
Why Sunrun stock price has surged
Sunrun is one of the biggest players in the clean energy industry in the United States. It is an integrated firm that manufactures and installs solar panels to individual and corporate clients in the United States.
Sunrun’s business model involves it installing solar panels to customers for zero or little upfront cost and then it recoups the funds by charging customers a monthly bill. In this subscription model, the company owns and maintains the solar infrastructure.
The company also installs solar power to clients who take ownership of the product. Customers who select this option can pay the system upfront or through monthly payments.
Sunrun stock price has been under pressure in the past few months. Its biggest challenge is that Donald Trump and the Republican Party are working to undo Joe Biden’s flagship clean energy bill that Trump calls the Green New Scam.
One proposal is to undo the clean energy credits that make it affordable for customers to move to solar. Joe Biden’s bill gives customers a 30% tax credit on installing solar and battery systems.
The BBB that the House of Representatives voted for eliminated some of these credits. Therefore, the Sunrun stock price has surged as investors anticipate that the Senate bill will preserve some of these credits. The CEO said:
“We expect a range of draft proposals to be issued, possibly including some draconian scenarios, but they are expected to be moderated as negotiations progress.”
RUN faces major challenges ahead
To be clear: Sunrun faces other challenges, especially in California, which made changes to its solar credit policies by transitioning from Net Energy Metering (NEM) 2.0 to Net Billing Tariff or NEM 3.0.
This transition reduced the incentives for customers to install solar in their homes, and explains why the RUN stock price plunged by 75% between its highest point in August last year and its lowest point in April.
Sunrun stock price is also facing the tariff challenge that has boosted its import costs. The management believes that its forward purchases will help it mitigate its tariffs in the near term. But it also expects to be impacted in the long term if tariffs remain.
Analysts anticipate that the company’s growth will be steady in the foreseeable future. The average estimate is that its second-quarter revenue will be $555 million, a 5.98% increase from the same period last year. They also see the annual revenue in 2025 and 2026 being $2.24 billion and $2.5 billion, representing a 10% and 11.8% increase.
The average Sunrun stock price forecast among analysts is $11.48, up from the current $10.
Read more: Looking for 75% return within a year? Buy this solar stock today
Sunrun share price technical analysis
RUN stock chart | Source: TradingView
The daily chart shows that the RUN stock price bounced back to $10 on Friday, a big increase from this month’s low of $6.25. It has formed a substantial bottom near the support at $6.
The stock moved above the 50-day and 100-day Exponential Moving Averages (EMA), a sign that bulls are in control. It has moved above the 23.6% retracement level.
RUN stock has formed a bullish engulfing pattern. Therefore, the stock may continue rising as bulls target the key resistance point at $13.27, its highest point in May, and a few points below the 50% Fibonacci Retracement level.
The post Sunrun stock price has rebounded: is it a buy or is this a bull trap? appeared first on Invezz
