Generac upgraded to Buy at Guggenheim as inventory workdown nears end

As previously reported, Guggenheim upgraded Generac to Buy from Neutral with a $142 price target following the company’s Q3 report earlier this week and the firm’s subsequent conversation with the company. Though results were generally in line with expectations and the 2023 outlook was unchanged, Generac “appears to be nearing the end” of the home standby inventory workdown that has been a headwind since the middle of last year, the analyst tells investors. The firm has “a conservative view of what normalized revenue growth should look like” and does not expect a return to the “torrid growth of the COVID era,” but contends that even more moderate market growth yields estimates that suggest an attractive current valuation.