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CNBC
11 minutes ago
- CNBC
RBC Capital Markets upgrades this solar stock to outperform following tax credit clarification
There's a rosy outlook ahead for Sunrun , according to RBC Capital Markets. The bank upgraded the solar stock to an outperform rating from sector perform. Analyst Christopher Dendrinos' price target of $16 per share, up from $12, implies a potential upside of 15% from here. Shares of Sunrun have surged 50% this year. RUN YTD mountain RUN YTD chart As a catalyst, Dendrinos pointed to guidance issued Friday from the Treasury Department on how renewable projects might qualify for tax credits under President Donald Trump's One Big Beautiful Bill Act. While the act terminates investment and production tax credits for solar and wind projects after 2027, projects that start construction within 12 months of the passage of the act can still claim credits beyond this deadline. "Treasury guidance firms up longer term outlook and the business model," the analyst wrote. "We believe the guidance provides longer term demand visibility and largely removes the uncertainty under Trump's EO calling for stricter Treasury guidance on enforcement of 'commence construction' rules." Furthermore, the expiration of the federal homeowner rooftop solar tax credit in December of this year could drive demand to the third-party ownership market, where a solar company owns and maintains a solar system versus the homeowner, Dendrinos said. This shift would be a tailwind for Sunrun. "With the termination of the 25D credit we believe more favorable economics under a TPO model will drive demand away from non-TPO," Dendrinos said. "We believe this presents RUN with an opportunity to take share and selectively onboard additional dealers and hire others as non-TPO installers look to restructure and partner with a TPO provider." The analyst added that Sunrun's value proposition lies in its cash generation stemming from opportunities such as higher solar adoption, cost reductions in customer acquisition and higher utility power pricing. Dendrinos believes that Sunrun's cash generation forecast for 2026 could approximate to around $550 million, up from 2025's $308 million. — CNBC's Spencer Kimball contributed to this report.
The Hill
40 minutes ago
- The Hill
Republican civil war erupts over earmarks in funding bills
The return of earmarks to the annual appropriations bills has sparked a battle among Republicans on Capitol Hill, pitting fiscal hawks against members of the Appropriations Committees and their allies. It's a serious battle and one that could scuttle the chances of passing appropriations bills ahead of the Sept. 30 government funding deadline. Republican responsibility for the huge federal deficit has become a hot political issue after President Trump signed the One Big Beautiful Bill Act, which is projected to add $3.4 trillion to the debt over the next decade, into law. Conservatives are deeply disappointed that Trump's bill did not make deeper cuts to federal spending, and they want to make a statement with significant reductions in the annual appropriations bills for fiscal 2026. Adding to the frustrations of fiscal hawks, those bills are already loaded with earmarks directing the Trump administration how to spend funds. Conservatives view the return of earmarks as a return to the days of pork-barrel spending and a bad look for Republicans when the party is taking fire from Democrats for exploding future deficits. Sen. Mike Lee (R-Utah), a leading conservative, argued that earmarks are still prohibited by Senate Republican conference rules, even though some members of the conference choose not to follow them. 'It's still prohibited by conference policy, and I think we need to stick to that,' Lee told The Hill. Lee said the proliferation of earmarks in the spending bills are 'incompatible with our approach as Republicans, and it's also incompatible with having $37 trillion in debt.' Some conservatives are pushing for Congress to pass a yearlong stop-gap spending measure that would freeze federal funding levels as a strategy to keep spending in check and the next wave of earmarks in limbo. Senate Republicans voted for a 'permanent ban' on earmarks in May 2019, when the proposal passed by a 28-12 vote after a heated debate behind closed doors. But earmarks have since made a big comeback. The House, then controlled by Democrats, voted in March 2021 to reverse an internal ban on earmarks. Senate Republicans, who were in the minority at the time, decided in April 2021 to stick with their conference pro forma ban on earmarks but left open a big loophole by allowing individual GOP senators to request money for home-state projects. That decision still rankles some Republicans years later. They believe they're in a position to change the rising tide of earmarks now that their party controls the White House and both chambers of Congress. Sen. Ron Johnson (R-Wis.) called the earmarks buried in the spending bills 'offensive.' 'It is offensive that I don't know what they are yet,' he said of earmarks. 'I'm asking my staff and we don't have the specifics on this. 'That's the problem. This stuff is all secret until you're ready to vote on it,' he added. Johnson has a proposal that would automatically rescind earmarks if lawmakers 'brag' about the millions of dollars in federal funding they're steering to projects back home in any kind of political context. Under his proposal, 'the only time members can talk about the earmarks, their congressionally directed spending, is as part of official Senate business — a hearing, a subcommittee hearing and on the floor,' he said. 'They can't then go out and brag about it in the media … if they do that, if they issue a press release, if they put it in a campaign ad, that spending gets automatically rescinded,' Johnson explained. Twenty-one Republican senators voted for Johnson's amendment when he offered it to the appropriations bill funding military construction and the Department of Veterans Affairs, a bill that was expanded to fund the Department of Agriculture and the legislative branch. Senate Finance Committee Chair Mike Crapo (R-Idaho) and Sens. Ted Cruz (R-Texas), Steve Daines (R-Mont.), Joni Ernst (R-Iowa), Josh Hawley (R-Mo.), Bernie Moreno (R-Ohio), Rand Paul (R-Ky.) and Lee were among the Republicans who voted for Johnson's proposal. The conservatives' backlash against earmarks in the package came after Punchbowl News reported that Senate Appropriations Committee Chair Susan Collins (R-Maine) loaded more than $810 million in earmarks and directed spending for Maine in the fiscal 2026 spending bills crafted by her committee. Collins, who faces a tough reelection battle next year, argues she has a better sense of her state's funding needs than unelected bureaucrats in Washington who otherwise would get to decide how to dole out federal funds without congressional guidance. Other Republicans are working hard behind the scenes to steer more money to their home states. More Republican senators have requested congressionally directed spending, aka earmarks, for the fiscal 2026 spending bills compared to last year. And earmarks have exploded in the Republican-controlled House. One Republican source familiar with the details of the spending bills noted House Republicans are also requesting more earmarks than they did last year and pointed out that Freedom Caucus Chair Andy Harris (R-Md.), an outspoken House conservative, has requested more than $55 million for his district. An analysis by Roll Call found House Republicans have packed the appropriations bills for next year with nearly $8 billion in earmarks. Sen. Rick Scott (R-Fla.) — the chair of the Senate Steering Committee who voted for Johnson's proposal to rescind earmarks if senators use them to score political points — said conservatives will make additional efforts to pull earmarks out of the spending bills and find other ways to reduce federal spending. 'Hopefully we have time to review the bills [and] not get rushed into votes on these things,' he said. 'We've got to understand we have a $2 trillion [annual] deficit, so we've got to get spending under control. That's what I'm going to try to do, and there are a lot of people in the same camp that I am.' Scott indicated he sees the battle against earmarks as part of a broader effort to curb federal spending after conservatives failed to include bigger spending reforms in Trump's megabill. 'People are doing everything they can to try to get spending under control,' he said. Lee, Johnson and Scott pushed an amendment to Trump's bill in June to reduce Medicaid spending by another $313 billion by preventing new enrollees in Medicaid expansion states from receiving the 9-to-1 enhanced Federal Medical Assistance Percentage if they are not disabled or don't have dependent children. They delayed a key procedural vote to advance the bill in hopes of gaining Republican support for the proposal, but despite assurances of help from Senate GOP leaders and Vice President Vance, the amendment didn't receive a vote.
Yahoo
an hour ago
- Yahoo
Wells Fargo Lowered the Firm's PT on Lululemon Athletica (LULU), Kept an Equal Weight Rating
lululemon athletica inc. (NASDAQ:LULU) is one of the Undervalued Cyclical Stocks to Buy According to Hedge Funds. On August 4, Wells Fargo analyst Ike Boruchow lowered the firm's price target on lululemon athletica inc. (NASDAQ:LULU) from $270 to $225 and maintained an Equal Weight rating on the stock. The analyst believes that the story for lululemon athletica inc. (NASDAQ:LULU) remains tough, noting three main concerns. The first challenge for the company is its uncertain US comparable sales, along with an uncertain growth in China. On top of these challenges, the second half of the year is anticipated to be tougher due to tariff and markdown pressures. A store employee in an athletic apparel store restocking merchandise. Management released its second quarter 2025 outlook during its first quarter earnings call. The company expects net revenue to be in the range of $2.535 billion to $2.560 billion, reflecting 7% to 8% growth. lululemon athletica inc. (NASDAQ:LULU) designs and sells technical athletic apparel, footwear, and accessories. While we acknowledge the potential of LULU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
