Generac Holdings Inc’s (NYSE:GNRC) stock has lost around 30% over the last six weeks and now offers an attractive buying opportunity, according to BofA Securities.
The Generac Holdings Analyst: Ross Gilardi upgraded the rating for Generac Holdings from Neutral to Buy, while keeping the price target unchanged at $475.
The Generac Holdings Thesis: Adverse weather conditions and more than 600,000 households in the Midwest facing power outages heading into winter are likely to reignite the home-as-a-sanctuary theme, Gilardi said in the upgrade note.
This, along with “a growing list of various corporate announcements to delay return to work/return to virtual format” and the resurgence of COVID-19, is likely to boost home standby generator (HSB) demand, he added.
“Earlier this week, CA regulators proposed new rules for rooftop solar systems that threaten to slow installations, including lower credits for electricity sold back to the grid…The proposal is a risk for GNRC’s Chilicon acquisition, but with microinverter market share of less than 1%, there would still be plenty of growth opportunity throughout the US,” the analyst wrote.
GNRC Price Action: Shares of Generac Holdings were trading 0.77% higher at $358.30 midday Thursday.
