Sunrun (RUN) has potential to hit $60 again

Sunrun (RUN), a solar installer stock that briefly touched $100 per share during the January mania, has dipped down to $42 today. In my humble opinion as an ape, this is the market being retarded.

Some of the gloom stems from the EPS miss this past quarter. But the reason for that EPS miss is the best reason you could ever have: they had more revenue.

You see, most of their costs are upfront, and incurred when they install the solar panels. Once a solar panel is installed, they continue to recognize the revenue without much more costs. As the CEO said in their conference call, the surge in costs was one-time.

The executives basically told Julien Smith, the BoA analyst, that they will have “significant” free cash flow generation in the coming quarters.

There is no reason not to buy:

  • The technical analysis supports a bounce up.
  • Every analyst on the street has a PT of $56 or more.
  • Executives are hyping their performance a lot.
  • Lots of upsell opportunities with their Ford F150 partnership.
  • Major hedge funds are taking unusually large positions in this (see Viking and Jericho).
  • It could go meme again like it did in January.

This article was written by u/dragom7.