Generac stock price forecast: UBS sees a 70% upside from here

Shares of Generac Holdings Inc (NYSE: GNRC) are up more than 10% on Thursday after UBS said the Wisconsin-headquartered company was its top pick in alternative energy.

Generac stock could climb to $450 a share

Analyst Jon Windham is bullish on the company’s clean energy business. This morning, he announced a “buy” rating on the stock with a price target of $450 a share that represents another 70% upside from here.

Windham’s constructive view on Generac Holdings is largely based on the strength of its commercial and industrial segment. He forecasts the company’s 2023-24 revenue and adjusted EPS to grow by 7.0% and 10%, respectively.

Much of the bad news is already priced in

According to the UBS analyst, the post-COVID slowdown in demand for Generac’s home standby power is already priced into the stock that’s down more than 20% for the year. His note reads:

In April, Generac Holdings reported its financial results for the first quarter that easily topped Wall Street expectations. The NYSE-listed firm also raised its guidance for full-year sales. Wall Street also has a consensus rating of “buy” on GNRC.