KeyBanc 'Relatively Cautious' on Generac Holdings (GNRC), Reiterates Sector Weight Rating

KeyBanc analyst Jeffrey Hammond reiterated a Sector Weight rating on Generac Holdings (NYSE: GNRC).

The analyst commented: "Following our 4Q24 Residential Home Standby (HSB) checks, while we see plenty of support to 4Q24 results, we are relatively cautious into earnings given we feel a more cautious tack to 2025 could be necessary given the mixed hurricane demand follow-through and limited visibility to growth. LT, we continue to view the risk/reward as balanced, awaiting greater clarity around an improved consumer backdrop/C&I trajectory; as such, we remain SW.

All in, while we get the sense there is more than ample support to 4Q, our cautious stance into 4Q24 earnings centers around a potentially more conservative initial 2025 outlook given generally limited HSB visibility paired with still-choppy C&I trends with no catalyst to an inflection apparent. As such, with the Street pointing to ~+8% sales growth in 2025, we think +MSD% is likely a more prudent expectation, implying +HSD% growth in Res'l and +LSD% in C&I."

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 $158.72 yesterday.

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