William Blair analyst Brian Drab has maintained their bullish stance on GNRC stock, giving a Buy rating yesterday.
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Brian Drab has given his Buy rating due to a combination of factors including Generac’s robust second-quarter performance and promising prospects in the data center industry. The company exceeded revenue and earnings expectations, which contributed to a significant stock price increase.
Furthermore, Generac’s residential segment showed a healthy 7% revenue growth, bolstered by higher shipments of energy storage systems and Ecobee products. The commercial and industrial segment also experienced a 5% revenue increase, particularly in the telecom sector. The company’s strategic focus on the data center industry, with a substantial backlog for large-format generators and a potential $5 billion market opportunity, is a key driver of this optimistic outlook. Generac’s plans to expand manufacturing capacity for data center generators further underscore its growth potential.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $198.00 price target.
Based on the recent corporate insider activity of 43 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GNRC in relation to earlier this year.