Generac downgraded to Underperform from Neutral at BofA

BofA downgraded Generac to Underperform from Neutral with a price target of $91, down from $141. Generac was the second worst performing stock in the S&P 500 in 2022 and the firm had previously argued shares had "largely flushed out into 2023," but it now says the company’s "ambitious FY23 guidance seems increasingly out of reach to us." Despite management’s insistence that channel inventory congestion will be alleviated by the second, "this recovery is difficult to underwrite" as pressures mount in the residential segment in a deteriorating macro environment, BofA tells investors.