Goldman Sachs cut shares of Generac Holdlings (NASDAQ: GNRC) from a neutral rating to a sell rating in a research report sent to investors on Friday morning. The firm currently has $29.00 price target on the stock, down from their previous price target of $38.00.
“We downgrade GNRC from Neutral to Sell with 19% downside to our $29 12-mo target (vs 1% upside for our coverage) as we see a significant organic growth downturn and downside to consensus 2014-15 estimates for a stock trading at a significant growth multiple. We believe (1) home generator demand will peak in 1H13, (2) consensus 2014-2015 estimates anchor to peak storm demand, and (3) multiple contraction is a risk for a growth stock trading at 12x EV/EBITDA on our 2014 estimates. We are constructive on GNRC’s capital deployment and share gain opportunities, but believe the stock is discounting growth off peak demand.,” the firm’s analyst wrote.
Separately, analysts at Canaccord Genuity reiterated a buy rating on shares of Generac Holdlings in a research note to investors on Thursday, December 27th. They now have a $38.00 price target on the stock.
Five analysts have rated the stock with a buy rating, four have given a hold rating, and one has assigned a sell rating to the company’s stock. Generac Holdlings currently has a consensus rating of overweight and an average price target of $39.11.
Generac Holdlings traded down 0.03% on Friday, hitting $37.04. Generac Holdlings has a 1-year low of $18.35 and a 1-year high of $41.40. The stock’s 50-day moving average is currently $36.69. The company has a market cap of $2.530 billion and a price-to-earnings ratio of 27.44.
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