Guggenheim Securities has downgraded Generac Holdings Inc (NYSE: GNRC) to “Sell” from a prior investment rating of “Neutral”, as the financial services firm cited overvaluation.
Generac Holdings’ stock has risen over 31% since the beginning of March.
“The market is reacting to reports that 2024 is likely to see an active hurricane season,” Guggenheim Securities analysts wrote in a client note.
“To a lesser extent, we also believe that Generac has benefited from its association with energy decarbonization, although the company’s actual revenue in zero carbon energy continues to be limited,” the analysts added.
Stock Performance
The shares of Generac Holdings Inc (GNRC) closed 0.08% ($0.12) higher at $149.61 in New York on Thursday, as they reversed a loss from the previous market session.
The company’s total market cap now stands at $9.069 billion.
The shares of Generac Holdings Inc (GNRC) went up 28.39% in 2023, compared with a 24.23% gain for the benchmark index, S&P 500 (SPX).
Analyst stock price forecast and recommendation
According to TipRanks, at least 8 out of 14 surveyed investment analysts had rated Generac Holdings Inc’s stock as “Hold”, while 5 – as “Buy”. The median price target on the stock stands at $143.18, which translates into a 4.30% downside compared to the closing price on Thursday.
The high point of the analyst forecast range stands at $170.00.
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