Sunrun: Run For The Hills - This Rally Is Not Sustainable
Summary
- Given RUN's cash burn, it is evident that the company is still at a growth-at-all-costs stage, despite its long history and the massive boost from government initiatives.
- The bulls may continue hanging on, given its unique positioning in the renewable energy sector as the EV market grows tremendously over this decade.
- However, we are uncertain if this rally will hold, given the worsening macroeconomics and RUN's minimal profitability ahead.
- It is likely that RUN will face more short-term headwinds through H2'22 and H1'23, before recording a sustained stock recovery once the rising inflation is kept under control.
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