Generac Shares Down 3% on BofA Downgrade
<p><a href='https://financialmodelingprep.com/financial-summary/GNRC'>Generac (NASDAQ:GNRC)</a> shares dropped more than 3% on Friday after BofA Securities downgraded the stock from Neutral to Underperform. The new price target is $91 per share, a decrease from the previous $141. The analysts cited several concerns, including deteriorating fundamentals and sustained macro pressures, that adversely affect the risk-reward balance.</p>
<p>The main reasons for a more negative outlook are the weakened consumer and unique operational difficulties. Despite the argument from investors that management "kitchen sinked" expectations, the analysts flag aggressive guidance, lofty consensus estimates (2023 EBITDA of $630 million), and the risk of further multiple compression.</p>
<p>The analysts require "quantitative signs of execution" before acknowledging management's "lofty recovery," which is already included in the guidance. </p>

NASDAQ:GNRC