The outlook for solar panel company Sunrun is more uncertain in 2023, according to Barclays. Analyst Christine Chow downgraded the shares from overweight to equal weight and lowered her price target, citing the potential for weaker demand for US residential solar power. “We think overall US residential growth will fall somewhere in the mid-teens range for 2023, but may be more muted in 2024 as the effects of NEM 3.0 will not be felt until late 2023 and the first half of next year . . .,” Cho wrote in Wednesday’s note. “We are aligning our ratings to reflect our expectations for installers against this dynamic backdrop consisting of NEM 3.0, the IRA and rising rates,” Cho said. The analyst said Sunrun will continue to be the market leader, benefiting from widespread tailwinds in the solar industry. Shares of Sunrun are up more than 8% in 2023 after a poor performance over the past two years. The stock is down about 29% in 2022 and 50% in 2021. The analyst’s $35 price target, down from $44, is still more than 34% higher than Tuesday’s closing price of $26.09. Shares declined more than 4% in Wednesday’s premarket trading. Separately, analyst SunPower SunPower shares also fell more than 4%. —CNBC’s Michael Bloom contributed to this report.
Barclays downgrades Sunrun, cites weaker demand outlook for residential solar energy