Guggenheim Upgrades Sunrun to Buy, Sets $27 Target After Sharp Share Pullback

Core Viewpoint - Guggenheim upgraded Sunrun Inc. from Neutral to Buy with a price target of $27.00, citing an attractive entry opportunity due to recent stock selloff and improving cash generation potential [1][2] Group 1: Company Performance - Sunrun's third-quarter 2025 results showed solid business execution despite a challenging solar industry environment, indicating efficient operational management [2] - Analysts noted a 16% drop in Sunrun's shares, which was seen as an overreaction compared to a 0.13% rise in the S&P 500, labeling the decline as "excessive" [2] Group 2: Financial Outlook - Guggenheim highlighted improving prospects for consistent cash flow generation and future shareholder returns [2] - The new valuation approach is based on a two-stage discounted cash flow model focused on expected cash generation, moving away from the previous net earning asset growth model [2] - Despite industry challenges, Sunrun's financial fundamentals are strengthening [2]