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

Goldman Sachs downgraded Generac Holdings 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.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorDowngradesAnalyst RatingsGoldman Sachs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!