The company debuted on the market in its initial public offering (IPO) earlier in August. Now that the quiet period is over, the underwriters from the offering can now issue calls on this company.
The company entered the market on Wednesday, August 5, after setting its price at $14. Unfortunately the stock entered at $13.06, at the low end of its expected price range of $13 to $15. The shares closed down on both the following Wednesday and Thursday, at $10.77 and $8.77, respectively. The stock dropped a total of 37.4% to that Thursday’s close from the original pricing.
This company provides clean, solar energy to homeowners at a discount to traditional utility energy. Sunrun’s scalable operating platform provides it with a few advantages. First, it is able to drive distribution by marketing its solar service offerings through multiple channels, including a diverse partner network and direct-to-consumer operations. This multi-channel model supports broad sales and installation capabilities. Secondly, Sunrun is able to provide differentiated solutions to customers that it believes will drive meaningful margin advantages over the long term.
So far only five firms have issued calls on Sunrun:
- Morgan Stanley initiated coverage with an Overweight rating.
- Goldman Sachs initiated coverage with a Buy rating and a $17 price target.
- Merrill Lynch initiated coverage with a Buy rating and a $17 price target.
- Credit Suisse initiated coverage with an Outperform rating.
- RBC Capital initiated coverage with an Outperform rating and a $16 price target.
Shares of Sunrun were up 1.3% at $11.54 midday Thursday. The stock has a post-IPO trading range of $8.23 to $13.31.
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