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The outlook for photo voltaic panel firm Sunrun is more and more unsure by means of 2023, in response to Barclays. Analyst Christine Cho downgraded the shares to equal weight from obese, and lowered her worth goal, citing the chance of weaker demand forward for US residential photo voltaic vitality. “We expect total US residential development will are available in someplace within the mid-teens vary for 2023, however can be extra muted in 2024 because the impression of NEM 3.0 won’t be felt till finish of 2023 and the primary half of subsequent 12 months,” Cho wrote in a letter on Wednesday. “Now we have adjusted our rankings to mirror our expectations for installers to be kneaded on this dynamic backdrop consisting of NEM 3.0, the IRA and rising costs,” added Cho. The analyst stated Sunrun will proceed to be a market chief, benefiting from a broader tailwind within the photo voltaic business. Sunrun shares are greater by greater than 8% in 2023, after a poor efficiency up to now two years. The inventory fell nearly 29% in 2022, and 50% in 2021. Nonetheless, the analyst famous that “many of the development of RUN in latest quarters got here from CA, and due to this fact we anticipate its development to be unfavourable that can be affected within the close to time period from this publicity. .” The analyst’s worth goal of $35, down from $44, nonetheless represents greater than a 34% upside from Tuesday’s closing worth of $26.09. Shares fell greater than 4% in Wednesday premarket buying and selling. Individually, the analyst downgraded SunPower shares from underweight to obese, and lowered his worth goal to $18 from $26. SunPower shares additionally fell greater than 4%. —CNBC’s Michael Bloom contributed to this report.
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