Buy Generac (GNRC) on Weakness Related to Block Trade - BofA/Merrill Lynch

BofA/Merrill Lynch analyst Ross Gilardi reiterated a Buy rating and $65 price target on Generac Holdings (NYSE: GNRC) Friday, saying yesterday's 5% sell-off, sparked by a large intraday block trade at ~$49, creates a buying opportunity.

Before Thursday's sell-off, shares were underperforming handily since the company reported (May 1st) an in-line-to-slightly-disappointing Q114, which was partly weather-driven, the analyst notes. He says judging from the nature of recent inbound calls, there is some pent-up demand for the stock, but also some investor skepticism about the achievability of Generac’s full-year 2014 outlook, given a fading post-Hurricane Sandy tailwind.

"With a large block seller now out of the way (hopefully), we see scope for shares to rebound, and reiterate our Buy rating and $65 PO," he said.

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 $48.20 yesterday.

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