Morgan Stanley says Sunrun is 'most compelling clean energy stock,' sees shares doubling

Sunrun solar.
Source: Sunrun

Shares of Sunrun jumped more than 10% on Wednesday after Morgan Stanley reiterated its overweight rating on the company, calling it "the most compelling clean energy stock" across the firm's coverage.

Analyst Stephen Byrd also raised his target on shares of Sunrun from $86 to $91, suggesting about 110% upside from Tuesday's closing price.

His bullish call is based on several factors, including Sunrun's growth opportunity, as well as its low financing costs. Consumer demand for reliability — especially as Texas and California's grids come under pressure — should also drive adoption.

More In Future of Energy

CNBC ProSolar earnings are on deck after a lackluster first half. Here’s what to watch
CNBC ProBattery fund on track for best day in 4 months amid market snapback
CNBC ProCiti downgrades First Solar after stock jumps 20% in three months