William Blair analyst Brian Drab has maintained their bullish stance on GNRC stock, giving a Buy rating today.
Brian Drab has given his Buy rating due to a combination of factors including Generac Holdings’ strong financial performance in the first quarter. The company exceeded consensus estimates with revenue of $942 million and adjusted EPS of $1.26, driven by robust growth in its residential segment. This growth was supported by increased shipments of home standby generators and strong sales in residential energy technology, particularly from the Ecobee business. Additionally, the company achieved a significant expansion in gross and EBITDA margins, surpassing management’s expectations.
Despite some macroeconomic uncertainties, such as tariff and policy impacts, Generac’s management has effectively mitigated these challenges. The company’s updated outlook assumes the continuation of current tariffs, but with strategic adjustments, Generac has minimized their impact on gross profit. The company’s diversified supply chain, with a significant portion sourced from North America, further supports its resilience. These factors collectively underpin Brian Drab’s confidence in Generac’s potential for continued growth, justifying the Buy rating.
In another report released today, Stifel Nicolaus also reiterated a Buy rating on the stock with a $195.00 price target.