Sunrun (RUN) - Get Sunrun Inc. Report rose in premarket trading Monday after Susquehanna Financial analyst Biju Perincheril initiated coverage on shares of the solar energy company with a positive rating and $75 price target.
Perincheril acted based on “strong U.S. residential installation growth and favorable legislation in the current administration.” President Joe Biden is a strong supporter of renewable energy.
The market has great opportunity for growth, with Sunrun already dominating it and having solid potential to boost its market share, Perincheril said.
Sunrun was trading at $57.90, up 4.17%, early Monday.
Meanwhile, shares of solar energy companies Enphase Energy (ENPH) - Get Enphase Energy, Inc. Report and SolarEdge (SEDG) - Get SolarEdge Technologies, Inc. Report also rose after Perincheril upgraded their ratings to positive from neutral Friday. He lifted those ratings too on the outlook for buoyant growth in the residential sector and also on the correction of the sector in recent weeks.
The Invesco Solar ETF (TAN) - Get Invesco Solar ETF Report slid 19% in the month through Friday. It’s still up 62% over the past six months amid enthusiasm for Biden’s policy stance. The ETF recently stood at $91.50, up 2.14% in premarket trading.
Enphase Energy traded at $157.85, up 1.57%, and SolarEdge was at $2.85, up 1.45%.
Perincheril expects U.S. solar capacity to increase about 25 gigawatts over the next five years, an increase of 1 gigawatt from his January forecast, according to a report from Bloomberg.
SolarEdge and Enphase fell last week after California’s three biggest utilities proposed changes in the state’s solar program.
The changes would bring higher connection charges and lower rebates for homeowners who put up solar panels.