Argus Downgrades Generac Holdings (GNRC) to Hold

November 25, 2022 7:24 AM EST
Get Alerts GNRC Hot Sheet
Price: $121.07 -1.12%

Rating Summary:
    19 Buy, 7 Hold, 4 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 11 | Down: 31 | New: 13
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(Updated - November 25, 2022 7:30 AM EST)

Argus analyst John Eade downgraded Generac Holdings (NYSE: GNRC) from Buy to Hold.

The analyst comments "Our rating on Generac Holdings Inc. (NYSE: GNRC) is now HOLD, lowered from BUY. Though this well-managed company has a long record of market outperformance and earnings growth, supply chain issues have emerged that will challenge sales and margins for the next few quarters. Generac designs, manufactures, and sells power generation equipment, energy storage systems, and other power products for the residential and light commercial and industrial markets. Over the long term, we think that the company is well positioned to address the impact of climate change and energy market disruption, 5G deployment, and increased automation in manufacturing. For this reason, our five-year rating remains BUY. However, from a technical standpoint, the shares have been in a bearish pattern of lower lows and lower highs since October 2021. Compared to a group of peers that serve similar markets (FAST, ECL, WMX, OC), the shares are trading at below-average multiples, which we think is reasonable given the company's near-term growth challenges. We may look to get the GNRC shares back on the buy list as the installation capacity constraints ease."

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 $107.02 yesterday.

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