UPDATE: Stifel Nicolaus Initiates Hold on Generac Holdings

Stifel Nicolaus initiates its coverage on Generac Holdings GNRC with a Hold rating on limitations to near-term upside. Stifel Nicolaus says, "Generac is currently valued at 9.5x our 2012 EPS estimate. At this point, we believe a mid-teens P/E is appropriate, before applying a discount for control and storm-related volatility. Using this methodology, we see appreciation potential in the low-to-mid double digits in the coming year, which is shy of the 20% threshold we require to justify a Buy rating. We expect multiples to eventually expand as Generac diversifies its business." GNRC closed at $24.85 a share on Monday.