Why did Sunrun shares surge today? Q3 crushed expectations
Lari Bat/iStock via Getty Images

Sunrun (NASDAQ:RUN) sizzled in Thursday's trading, closing +18.7% after the largest U.S. residential solar company reported Q3 earnings that routed expectations, with analysts touting the company's strong pricing power and market opportunity as energy costs rise.
Sunrun (RUN) "continues to flex its pricing power without hurting demand," Susquehanna analyst Biju Perincheril summed up, according to Bloomberg.
The company forecasts solar energy capacity installed will increase ~25% for the full year, and expects net subscriber value will continue to rise in Q4 after the value of each subscriber rose to $13,259 in Q3 from $7,910 in Q2.
Sunrun (RUN) increased solar energy capacity installed by 17% Y/Y in Q3, while strong demand driven by rapidly increasing utility and energy prices provides confidence in the company's guidance, according to KeyBanc analyst Sophie Karp.
Sunrun (RUN) is well positioned to benefit from rising demand for residential solar panels, and high utility inflation enables the company to raise prices while still providing a "strong customer value proposition," Evercore ISI's James West said.
Other solar names also rallied Thursday, including (NOVA) +9.7%, (SPWR) +5.7%, (FSLR) +5.1%, (SEDG) +3.4%, (ARRY) +2.7%, (ENPH) +2.3%. 
Sunrun (RUN) shares are "mispriced in light of [an] expanding customer base," InvestOhTrader wrote in an analysis published last week on Seeking Alpha.