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Generac price target raised to $155 from $150 at Piper Sandler

Piper Sandler raised the firm’s price target on Generac to $155 from $150 and keeps an Overweight rating on the shares. In the firm’s view, Generac needed to make a case for revenue growth into 2024 using conservative assumptions for investor sentiment to improve. Piper believes the company met that hurdle by quantifying the degree it expects to under-ship the channel in 2023, assuming a continuation of soft consumer spend for large ticket items into 2024, and limited C&I growth next year. Generac believes it is closer to the end of the HSB de-stocking cycle and expects to return to normal by early 2024. Overall, the firm was “encouraged” by its multi-year outlook and, if the company successfully executes, sees a path for the multiple gap vs. industrial peers to close.

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