Truist Adjusts Generac Holdings Price Target to $120, Maintains Hold Rating
May 3, 2023
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Generac Holdings ($NYSE:GNRC), Inc. is a leading designer and manufacturer of a wide range of electrical power generation products serving the residential, commercial and industrial markets. Recently, Truist (formerly BB&T and SunTrust) financial institution has adjusted Generac’s price target from $145 to $120 and maintained their ‘Hold’ rating. Truist’s analysts believe that while the company is well-positioned to benefit from a recovery in the economy, Generac’s fundamentals may still be negatively affected by a near-term slowdown in its end markets. They are also concerned that supply chain issues could hit demand for Generac’s products and are wary of the competitive landscape for portable generators and other products. Despite these concerns, Truist remains optimistic about the long-term prospects for Generac Holdings. They believe that the company’s strong market position, its diverse product portfolio, and its focus on innovation provide a competitive edge that will allow it to continue to grow over time.
Additionally, Truist analysts noted that Generac’s recent acquisitions of complementary businesses have strengthened its overall position in the market.
Share Price
The stock opened at $102.2 and closed at $102.5, an increase of 0.3% from its previous closing price of $102.2. While the price target was adjusted, Truist maintained its hold rating, citing a lack of near-term catalysts and potential headwinds in the form of weakened demand due to the pandemic. Generac Holdings continues to be a watchlist stock, as investors wait and see how the company’s performance is impacted by current market conditions. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Generac Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 4.56k | 350.27 | 7.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Generac Holdings. More…
| Operations | Investing | Financing |
| 58.52 | -134.23 | 64.04 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Generac Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.17k | 2.8k | 36.76 |
Key Ratios Snapshot
Some of the financial key ratios for Generac Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 27.5% | 15.1% | 12.3% |
| FCF Margin | ROE | ROA |
| -0.6% | 15.4% | 6.8% |
Analysis
At GoodWhale, we conduct a thorough analysis of GENERAC HOLDINGS‘s financials to determine its overall financial health. Our Star Chart reveals that GENERAC HOLDINGS is classified as a ‘gorilla’, a type of company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. This makes it an attractive investment opportunity for growth-oriented investors who are looking for a company with strong performance. When it comes to its financial metrics, GENERAC HOLDINGS is strong in growth, profitability, and medium in asset. Its dividend metric is weak, however, this should not be an issue for investors focused on growth. In terms of its overall health score, we rate GENERAC HOLDINGS 8/10, indicating that it has a good level of cashflows and debt and is capable of safely riding out any crisis without the risk of bankruptcy. More…
Peers
In the market for standby generators, Generac Holdings Inc is up against some stiff competition from the likes of Musashi Co Ltd, Taihai Manoir Nuclear Equipment Co Ltd, and Weg SA.
However, the company has managed to stay ahead of the pack thanks to its innovative products and efficient manufacturing processes.
– Musashi Co Ltd ($TSE:7521)
As of 2022, Musashi Co Ltd has a market cap of 9.64B and a Return on Equity of 5.68%. The company manufactures and sells automotive parts, including engine valves, pistons, and crankshafts. It also provides engineering services.
– Taihai Manoir Nuclear Equipment Co Ltd ($SZSE:002366)
The company has a market capitalization of 4.67 billion as of 2022 and a return on equity of 697.02%. It is a manufacturer of nuclear equipment and supplies. The company’s products include reactors, nuclear fuel, nuclear power plant equipment, and nuclear waste disposal products.
– Weg SA ($OTCPK:WEGZY)
Weg SA is a Brazilian company that manufactures electric motors and generators. It has a market cap of 27.73B as of 2022 and a Return on Equity of 21.06%. The company is headquartered in Jaraguá do Sul, Santa Catarina, and has over 30,000 employees. Weg SA is one of the largest manufacturers of electric motors and generators in the world.
Summary
Generac Holdings Inc. recently had its price target adjusted from $145 to $120 by Truist, who maintained its Hold rating on the stock. This adjustment is based on an assessment of the company’s fundamentals, risk/reward profile, and competitive position. Analysts noted that while the company’s quarter-over-quarter earnings were strong, market conditions remain challenging as the pandemic continues to impact demand in various industries.
Additionally, the competitive landscape has grown increasingly competitive as many companies have entered the space and placed pressure on margins. As a result, analysts remain cautious and do not expect an upside potential for the company in the near future.
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