Generator supplier Generac is primed for major gains ahead, according to Truist. The firm upgraded the stock to buy from hold on Friday. Its price target of $160 per share implies upside of 44% from Thursday’s close. The company, sells both residential and commercial backup generators, is up 10% year to date — lagging the broader market. This week, the stock sold off on the back of disappointing second-quarter results. GNRC 5D mountain Generac this week But analyst Jordan Levy said investors shouldn’t shy away from the stock. “We’re upgrading shares of GNRC to Buy following a ~30% post-earnings sell-off that we see creating an attractive entry for investors to gain exposure to a well established name in home/ commercial backup power w/upside potential from a recovering Clean Energy segment,” Levy said. The analyst also pointed to potential upside compared to the firm’s 2024 forecasts for growth thanks to pent up demand for home standby generators. “Given tailwinds surrounding home energy resiliency/ consumer energy awareness, we believe we could see HSB cycles compressed driving pent-up demand moving into 2024 that could create upside to our 2024 growth forecasts,” he said. Investment firm Janney also upgraded Generac to buy on Friday, citing improvements in free cash flow generation, an attractive valuation and potential upside from an analyst day in September. — CNBC’s Michael Bloom contributed to this report.
