Sunrun stock price exploded higher last Friday, mirroring the performance of other solar companies like SolarEdge, NextEra, and NextTracker. RUN jumped to a high of $13.92, its highest point since November last year and 160% from its lowest level this year.
Why the Sunrun stock price is soaring
The RUN stock price has surged for two main reasons. First, the most recent catalyst happened after the Donald Trump administration released its guidance on the eligibility requirements for companies seeking tax credits as part of his flagship Big Beautiful Bill.
The stock jumped as the new guidelines were not as severe as initially feared. In a statement, the Treasury Department said that residential solar systems companies will still qualify for tax relief as part of Joe Biden’s rules.
Additionally, the rules stipulate that new large projects will still be eligible for these credits, depending on their size. Also, solar and wind projects are still eligible for relief as long as they start construction within the next 12 months. In a statement, one analyst told Bloomberg:
“There was some expectation that the rule-making would make it very onerous to safe harbor tax credits, but this seems pretty straightforward. This is particularly favorable news to the residential and small commercial solar companies.”
RUN published strong earnings
The other main reason why the Sunrun stock price is rising is that the company published strong financial results in a very difficult period.
These results showed that the company’s aggregate subscriber value rise to $1.6 billion, up by 40% from the same period last year. Its contracted net value creation was up by 316% YoY to $376 million.
Most importantly, the company’s profits are surging, with the subscriber margin hitting 11% during the quarter, the highest figure ever.
More data showed that the company’s business was doing well, with the number of new subscribers rising by 15% to 28,823. This increase brought its total subscribers to 941,701, while its storage capacity soared to 392 megawatt hours.
Sunrun stock also jumped as the company boosted its forward guidance. It now expects that its subscriber value in Q3 will be between $1.5 billion and $1.6 billion, while its annual number will be between $5.7 billion and $6 billion.
There are also signs that the company is undervalued, as concerns about the Trump administration rose. Data shows that the company has a forward P/E ratio of 9.9, much lower than the sector median of 20.5.
Sunrun share price technical analysis
RUN stock chart | Source: TradingView
The daily timeframe shows that the RUN stock price formed a double-bottom pattern at $5.40 , its lowest level in April and June. This is one of the most common bullish reversal pattern in technical analysis.
The stock has now moved above the neckline at $13.26, confirming the bullish breakout. Most notably, it is about to form a golden cross pattern, which forms when the 50-day and 200-day moving averages cross each other.
Therefore, the Sunrun share price will likely continue rising as bulls target the key resistance level at $20, up by 40% from its current level.
The post Sunrun stock price forecast: rare patterns points to a surge to $20 appeared first on Invezz
