Market Overview

UPDATE: Goldman Sachs Downgrades Generac Holdings to Sell on Sales Downturn

Related GNRC
Fast Money Picks For August 14
Benzinga's Top Downgrades
Home Improvement Stocks Tumble (Fox Business)

Goldman Sachs downgraded Generac Holdings (NYSE: GNRC) from Neutral to Sell and lowered the price target from $38.00 to $29.00.

Goldman Sachs noted, "We downgrade GNRC from Neutral to Sell with 19% downside to our $29 12-mo target (vs 1% upside for our coverage) as we see a significant organic growth downturn and downside to consensus 2014-15 estimates for a stock trading at a significant growth multiple. We believe (1) home generator demand will peak in 1H13, (2) consensus 2014-2015 estimates anchor to peak storm demand, and (3) multiple contraction is a risk for a growth stock trading at 12x EV/EBITDA on our 2014 estimates. We are constructive on GNRC's capital deployment and share gain opportunities, but believe the stock is discounting growth off peak demand."

Generac Holdings closed at $35.66 on Thursday.

Latest Ratings for GNRC

DateFirmActionFromTo
Aug 2014Canaccord GenuityDowngradesBuyHold
Jul 2014Bank of AmericaDowngradesBuyNeutral
Jan 2014BairdUpgradesNeutralOutperform

View More Analyst Ratings for GNRC
View the Latest Analyst Ratings

Posted-In: Goldman SachsAnalyst Color Downgrades Analyst Ratings

 

Related Articles (GNRC)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters