Wells Fargo Initiates Generac Coverage With Overweight Rating - Generac Hldgs (NYSE:GNRC)

Wells Fargo analyst Praneeth Satish initiated coverage of Generac Holdings Inc. GNRC with an Overweight rating and price target of $285.
Satish noted the company is well-positioned to benefit from the continued growth of the home standby (HSB) market.
The analyst mentions that the company recently added clean energy solutions, including residential solar inverters and battery storage, energy management devices, and power grid software platforms.
Satish forecasts GNRC to grow revenue at a 10-year CAGR of ~8%, driven primarily by increasing grid instability due to frequent extreme weather events and an increased reliance on intermittent renewable power generation.
The analyst sees modest growth in the new residential solar business, which could represent a long-term upside to the analyst's model.
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Price Action: GNRC shares are trading lower by 2.04% at $212.58 on the last check Wednesday.