Recent sell-off in Generac stock ‘creates an attractive entry’: Truist

August 05, 2023 02:47 PM PDT | By Invezz

Recent sell-off in Generac stock ‘creates an attractive entry’: Truist — Image source: Invezz

Generac stock has upside to $160

Jordan Levy upgraded the backup generators company following its recent sell-off to “buy” and said its shares could hit $160 – a 40% upside from here.

He’s bullish on Generac stock for two primary reasons; attractive valuation and a potential for continued recovery in clean energy.

The sell-off creates an attractive entry for investors to gain exposure to a well-established name in home/commercial backup power w/upside potential from a recovering Clean Energy segment.

The New York listed firm noted a 23% year-on-year decline in its quarterly revenue that made it come in shy of earnings estimates in Q2.

Generac could benefit from pent-up demand

Note that Generac Holdings has lowered its guidance for the full year as well. Earlier this week, it warned of an up to 12% annualised decline in sales in fiscal 2023.

Still, the Truist analyst is convinced that pent-up demand could help Wisconsin-headquartered firm beat his growth estimates for 2024. According to Levy:

Given tailwinds surrounding home energy resiliency/consumer energy awareness, we could see HSB cycles compressed driving pent-up demand and could create upside to our 2024 growth forecasts.

Generac stock is also attractive considering continued improvements in terms of free cash flow. The Fortune 100 company is scheduled for an analyst day next month which may also serve as a catalyst for its share price.

The post Recent sell-off in Generac stock ‘creates an attractive entry’: Truist appeared first on Invezz.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.