Sunrun (RUN) is likely to offer longer-term demand visibility due to the US Treasury outlook, which will also help the company "largely" eliminate the uncertainty under President Trump's executive order for stringent Treasury guidance on enforcement of "commerce construction" rules, RBC said in a Monday note.

The company's value proposition lies in cash generation and it is expected that Sunrun will have cash generation of about $550 million in 2026, analysts Christopher Dendrinos and Laura Deng wrote.

Sunrun could enhance incremental client value overtime through higher utility power pricing, reduced customer acquisition cost, higher solar and storage adoption, and additional grid services, the analysts said, adding that they anticipate these opportunities could raise gross contracted subscriber value by over 10%.

Additionally, Sunrun is likely to grab overall market share by terminating the 25D tax credit at year end 2025, which may increase demand to the TPO sector where the firm is a "market leader," the analysts wrote.

RBC upgraded Sunrun to outperform from sector perform and raised its price target to $16 from $12.

Shares of the company were up 3.5% in recent Monday premarket activity.