Generac Holdings (GNRC) Has Backlog 8X Post Hurricane Sandy as we Enter Fire/Hurricane Season - BofA Securities

BofA Securities analyst Ross Gilardi reiterated a Buy rating and $390.00 price target on Generac Holdings (NYSE: GNRC) acknowledging the impressive run in the share price but also noting that the company has its biggest backlog in history heading into the hurricane/forest fire season. In addition, there are indications that demand will continue to grow:
1) the National Electricity Reliability Council (NERC) yesterday issuing a fresh warning of straining grids across the US
2) severe drought in the West
3) predictions for an another above average hurricane season
4) Biden pledging $1bn for severe weather preparedness

The analyst stated "Backlog could be 8x the size of post-Sandy. Generac pegged its HSB backlog at 28 weeks on its late April earnings call, which implies over $1bn of sales by our calculations. We do not think investors appreciate that this is roughly 8x the size of the backlog into 2013 on the back of Hurricane Sandy and nearly a full year of HSB sales in 2020, which was a record year by a shot. Unlike 2012-2013 when GNRC was EXITING peak season, GNRC has this backlog ENTERING the busiest time of the year when forecasters of all stripes seem to be forecasting an active season."

For an analyst ratings summary and ratings history on Generac Holdings click here. For more ratings news on Generac Holdings click here.

Shares of Generac Holdings closed at $320.21 yesterday.

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