Shares of Generac Holdings (NYSE:GNRC) are down today, which can be attributed to an analyst downgrade. Julien Dumoulin Smith of Bank of America Securities changed his rating from Hold to Sell while assigning a price target of $91 per share. For reference, his previous price target was $141.
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The analyst pointed to inventory congestion as the reason for the downgrade. Indeed, dealers are having a difficult time moving the company’s products (backup generators and solar-powered equipment) despite the recent winter storms. As a result, he’s not confident in management’s prediction that the problem will be resolved by the second half of 2023.
Overall, Wall Street analysts have a consensus price target of $144.82 on GNRC stock, implying over 37% upside potential, as indicated by the graphic above.