Oppenheimer Says Scoop Generac (GNRC) on Weakness as Offering Pulled

Yesterday shares of Generac Holdings (NYSE: GNRC) fell after the company announced a secondary offering of 11.5 million shares. The offering would have increased the float by 50 percent, and shares traded lower as a result. This morning we learned the company was withdrawing the offering.

Commenting on developments, analyst Christopher Glynn of Oppenheimer said "On the heels of GNRC's withdrawn secondary offering due to market conditions, we would be vigilant to take advantage of any related overhang on the stock."

While Glynn believes increased liquidity would benefit long-term shareholders, for now he thinks it's worth focusing on fundamentals.

"In our view, Hurricane Sandy increased awareness of Generac and increased understanding of its prospects, and recent re-valuation was justified. The recent outages raise prospects for a sustained and accelerated pace of adoption of home standby generation that is difficult to model, but intriguing to ponder," added Glynn.

Oppenheimer has an Outperform rating on Generac with a price target of $39.

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