GLJ Research Upgrades Sunrun, SolarEdge to Hold Citing Solar-Friendly Senate

GLJ Research analyst Gordon Johnson upgraded both SolarEdge and Sunrun stocks from Sell to Hold, citing a recent selloff and a supportive Senate environment for residential solar as key factors influencing the upgrades. Despite the ratings improvements, Johnson and GLJ Research continue to view the core business models of both companies as structurally flawed. The Senate's pro-solar stance, including bipartisan support for maintaining energy tax credits, has increased the risk of a near-term positive price movement for these stocks. Sunrun’s price target was set at $7.78, with an average analyst target suggesting significant upside potential from current prices, while SolarEdge received a $6.90 target. Investors are cautioned about the volatility and risks, especially given Sunrun’s reliance on debt issuance and the potential understatement of operational expenses. The upgrades reflect a strategic response to favorable legislative developments despite underlying business concerns.