Generac Holdings (NYSE:GNRC) was raised to Neutral at BofA on Wednesday, with analysts lifting the firm's price target on the stock to $110 from $76 per share.
The firm said it is stepping to the sidelines as "the channel destock looks mostly played out."
"We have maintained our sustained caution over the last several quarters, as Generac (GNRC) destocked its home standby (HSB) channel, seeing weaker sell in (i.e. recognized revenue) in the process," explained the analysts. "However, 3Q23 results beat our expectations, led by better-than-expected execution in resi and C&I, where the bulk of the delta to our estimates was driven by improving HSB sales."
Analysts noted that management comments suggest quarter-over-quarter and year-over-year growth in HSB revenues in 4Q23.
"When combined with latest commercial and industrial (C&I) results, FY23 guidance appears more attainable, and shares look increasingly de-risked," they added.