Jeff Osborne, an analyst from TD Cowen, maintained the Buy rating on Generac Holdings (GNRC – Research Report). The associated price target was lowered to $155.00.
Jeff Osborne has given his Buy rating due to a combination of factors that highlight Generac Holdings’ potential for growth. The company reported a robust first quarter, primarily driven by increased sales of home standby generators. This growth contributed to both revenue and EBITDA surpassing expectations. Additionally, Generac’s strategic price adjustments are anticipated to counterbalance the effects of tariffs, maintaining the high end of their 2025 revenue and EBITDA guidance.
Despite some challenges, such as potential demand reduction due to price hikes and lower second-quarter guidance, Generac is on track with its major product overhaul. The introduction of new products in 2025 is expected to bolster their market position. Furthermore, the company’s energy technology sales, including Ecobee and energy storage systems, are projected to grow, with Ecobee likely reaching profitability in 2025. These factors collectively underpin Osborne’s optimistic outlook on Generac’s stock.
In another report released yesterday, Northcoast Research also maintained a Buy rating on the stock with a $162.00 price target.