Sunrun (RUN) is still poised for growth and margin expansion, although they may take longer than previously expected, RBC Capital Markets said in a Thursday note.
"RUN continues to manage its growth but is seeing some near-term ramping challenges which are leading to a lower cash gen guide for the year," the report said.
In recent Q2 results, Sunrun reduced its full-year outlook for cash generation to $200 million to $375 million from the previous guidance of $250 million to $450 million due to lower order volumes, as well as higher capital costs.
The report also said customer additions are expected to have bottomed after coming in at about 25% below RBC estimates.
RBC cut its price target to $14 from $18 while keeping its outperform rating.
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