UPDATE: Goldman Sachs Reiterates Neutral Rating, Raises PT on Generac Holdings
In a report published Friday, Goldman Sachs Group reiterated its Neutral rating on Generac Holdings (NYSE: GNRC), and raised its price target from $25.00 to $38.00.
Goldman Sachs noted, “We see Generac as the biggest beneficiary of deteriorating confidence in power reliability borne of decades of slowing US power distribution investment, as home stand-by generators are uniquely positioned to fill the void for homeowners requiring higher reliability. We raise our EBITDA estimates by 30%, as Generac's densest distribution path is in the area impacted by Hurricane Sandy (2,200 out of 4,500 national dealers), and believe consensus is likely to underestimate earnings through 1H13. Our new $38 12-month target implies 12% upside. However, we maintain our Neutral rating as we would need conviction on an a longer ‘tail' of new residential home stand-by demand beyond the storm to get more constructive longer term.”
Generac Holdings closed on Thursday at $34.00.
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