Guggenheim upgraded shares of Generac Holdings (NYSE:GNRC) to Buy from Neutral in a note Friday, assigning the stock a $142 price target.
Analysts at the firm said they are upgrading the stock following its third-quarter results and its subsequent conversation with the company.
"Although the results were generally in line with our expectations and the 2023 outlook was unchanged, GNRC appears to be nearing the end of the home standby inventory workdown that has been a headwind for the business since the middle of last year," the firm said in its note.
"We have a conservative view of what normalized revenue growth should look like - we do not expect a return to the torrid growth of the COVID era - but even more moderate market growth still yields estimates that suggest an attractive current valuation for GNRC," they added.
The analysts also pointed out that they are not assuming much growth for the residential energy technology business, at least outside of Ecobee.