Sunrun Stock To $7?

Core Insights - Sunrun Inc. is the leading residential solar installer in the U.S. but faces instability due to policy changes, financial pressures, and market dynamics [2] - The company has a market capitalization of $2.5 billion and has experienced a 36% loss in value over the past year, with a current share price of $11 [3] - Recent legislative actions have expedited the expiration of key federal tax credits, complicating Sunrun's ability to leverage these incentives [4][5] Financial Performance - Sunrun's stock has historically underperformed during market downturns, with a 67.4% decline in the 2022 inflation-driven selloff compared to the S&P 500's 25.4% decline [6] - The stock is currently trading at 1.1x price-to-sales, below its 3-year average of 1.5x and significantly lower than the S&P 500 average of 3.1x [9] Business Model and Strategy - The company's business model heavily relies on tax credits for its leasing and power purchase agreements, making it vulnerable as these incentives diminish [5] - Sunrun is adapting by expanding into energy storage and changing billing models, but investor concerns remain regarding the effectiveness of these adjustments [8]