Janney starts Generac with a Buy, sees core HSB headwinds priced in

As previously reported, Janney Montgomery Scott analyst Sean Milligan initiated coverage of Generac with a Buy rating and $160 fair value estimate. The core residential home standby, or "HSB," generator business is in the early stages of a downturn, but with shares down about 80% from their peak Milligan feels this "has already been discounted in the share price," he tells investors. The shares now trading at a discount to industrial peers presents a "free option" on clean energy growth, argues Milligan, who also sees consistent free cash flow generation and buyback potential providing potential support for the stock and balancing out near-term concerns for residential HSB market trends.