Generac Holdings washout ‘creates an attractive entry point’ – Truist

Generac Holdings (NYSE:) shares are up more than 2% Friday after Truist upgraded the stock to Buy from Hold following its earnings sell-off.

Despite the climb today, GNRC is still way below its over $153 share price before its latest earnings release. It is currently trading at $113.50.

Truist analysts said the “late summer washout creates an attractive entry point.”

“We’re upgrading shares of GNRC to Buy following a ~30% post-earnings sell-off that we see creating an attractive entry for investors to gain exposure to a well-established name in home/ commercial backup power w/upside potential from a recovering Clean Energy segment,” the analysts wrote in a note.

“As we’d previously modeled a slower 2H recovery in HSB, GNRC’s reduced guide has minimal impact to our NT ests, while we now see a bigger step up in 2024/2025 GMs,” they added.

Truist sees a meaningful upside to GNRC shares and maintains its $160 price target on the stock. They look for GNRC to provide more details on plans to grow Clean Energy during the company’s upcoming Investor Day on September 27.