Why did Sunrun shares surge at this time? Q3 crushed expectations (NASDAQ:RUN)

Sunrun (NASDAQ:RUN) sizzled in Thursday’s buying and selling, closing +18.7% after the most important U.S. residential photo voltaic firm reported Q3 earnings that routed expectations, with analysts touting the corporate’s robust pricing energy and market alternative as power prices rise.

Sunrun (RUN) “continues to flex its pricing energy with out hurting demand,” Susquehanna analyst Biju Perincheril summed up, in response to Bloomberg.

The corporate forecasts photo voltaic power capability put in will enhance ~25% for the total yr, and expects web subscriber worth will proceed to rise in This fall after the worth of every subscriber rose to $13,259 in Q3 from $7,910 in Q2.

Sunrun (RUN) elevated photo voltaic power capability put in by 17% Y/Y in Q3, whereas robust demand pushed by quickly growing utility and power costs offers confidence within the firm’s steerage, in response to KeyBanc analyst Sophie Karp.

Sunrun (RUN) is properly positioned to profit from rising demand for residential photo voltaic panels, and excessive utility inflation allows the corporate to boost costs whereas nonetheless offering a “robust buyer worth proposition,” Evercore ISI’s James West mentioned.

Different photo voltaic names additionally rallied Thursday, together with (NOVA) +9.7%, (SPWR) +5.7%, (FSLR) +5.1%, (SEDG) +3.4%, (ARRY) +2.7%, (ENPH) +2.3%.

Sunrun (RUN) shares are “mispriced in gentle of [an] increasing buyer base,” InvestOhTrader wrote in an evaluation printed final week on In search of Alpha.