Wells Fargo Initiates Generac Coverage With Overweight Rating

• Wells Fargo analyst Praneeth Satish initiated coverage of Generac Holdings Inc. (NYSE:GNRC) with an Overweight rating and price target of $285.
• Satish noted the company is well-positioned to benefit from the continued growth of the home standby (HSB) market.
• The analyst mentions that the company recently added clean energy solutions, including residential solar inverters and battery storage, energy management devices, and power grid software platforms.
• Satish forecasts GNRC to grow revenue at a 10-year CAGR of ~8%, driven primarily by increasing grid instability due to frequent extreme weather events and an increased reliance on intermittent renewable power generation.
• The analyst sees modest growth in the new residential solar business, which could represent a long-term upside to the analyst's model.
• Also Read: Short Seller Spruce Point Targets Generac, Alleges 'Numerous Shady M&A Deals'
• Price Action: GNRC shares are trading lower by 2.04% at $212.58 on the last check Wednesday.