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