Market Overview

Why BofA Is Turning Bullish On Generac Holdings Just In Time For Hurricane Season

Why BofA Is Turning Bullish On Generac Holdings Just In Time For Hurricane Season

Although shares of Generac Holdings Inc. (NYSE: GNRC) have rallied to record highs, the stock seems to be more room to run, with the hurricane and wildfire seasons ahead, a reacceleration in clean energy and a possible bottoming of the industrial business, according to BofA Securities.

The Generac Holdings Analyst: Ross Gilardi upgraded Generac Holdings from Neutral to Buy and raised the price target from $135 to $200.

The Generac Holdings Thesis: Generac's performance already had strong momentum, with its home standby business generating 30% organic growth in the second quarter, Gilardi said in the Thursday upgrade note. (See his track record here.) 

Tropical storm Isaias hit the East Coast and put as many as 4 million homes out of power in critical Generac territory, the analyst said.

Hurricanes, wildfires and the pandemic have increased the value proposition of home backup power systems, he said. 

Generac’s clean energy business is still in the nascent stages of growth and could reaccelerate in the third quarter, Gilardi said.

“The company remains very bullish on the medium to long-term outlook for this business, which could also be a beneficiary of a Biden victory in the event that a new Democratic institution works harder to promote clean energy solutions.”

Generac’s commercial and industrial business, which contributes around 30% of revenue, “could be a source of upside over the next 1-2 years if the industrial cycle begins to recover,” according to BofA. 

GNRC Price Action: Shares of Generac Holdings were trading 0.39% higher at $171.10 at last check Thursday. 

Related Links:

Generac: Q2 Earnings Insights

Stocks That Hit 52-Week Highs On Wednesday

Latest Ratings for GNRC

Oct 2020Roth CapitalMaintainsBuy
Oct 2020Stephens & Co.Initiates Coverage OnOverweight
Oct 2020Canaccord GenuityMaintainsBuy

View More Analyst Ratings for GNRC
View the Latest Analyst Ratings


Related Articles (GNRC)

View Comments and Join the Discussion!

Posted-In: BofA Securities Ross GilardiAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga

Latest Ratings

MRTXHC Wainwright & Co.Maintains257.0
NVDATruist SecuritiesMaintains672.0
BLKBMO CapitalMaintains715.0
BLKDeutsche BankMaintains838.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at