Sunrun Inc. (NASDAQ:RUN) shares dropped more than 6% on Friday following the company’s Q4 results, with EPS of ($0.19) coming worse than the consensus estimate of ($0.02). Revenue was $435.23 million, compared to the consensus estimate of $409.1 million.

According to the analysts at Oppenheimer, the CA policy uncertainty is aiding booking activity for the company, and guidance for at least 20% growth in 2022 would be a substantial accomplishment given its scale.

The analysts expect the potential changes to CA solar rules to drive strong bookings through year-end given the timeline for revisions, public comments, and the anticipated grace period. The analysts are encouraged by the company adding a new battery supplier as they expect cell supply will become increasingly difficult and attach rates for storage will continue to grow.

The brokerage remains constructive on shares as it believes interest rate concerns are priced in and that the company will enjoy tailwinds from higher utility rates.