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Investing.com - Needham initiated coverage on Generac Holdings (NYSE:GNRC) with a Buy rating and a $248.00 price target on Wednesday. The target represents potential upside from the current price of $192.50, with InvestingPro data showing the stock has already gained over 72% in the past six months.
The research firm also added Generac to its Conviction List, signaling strong confidence in the power equipment manufacturer’s growth prospects.
Needham cited Generac’s dominant position in the residential home standby generator segment, where it commands over 70% domestic market share, as providing "durable core earnings and an FCF backstop."
The firm projects 2026 adjusted earnings per share of $9.93 for Generac, exceeding the consensus estimate of $9.02.
Needham also highlighted potential growth drivers including the unwinding of energy-technology margin headwinds (300-350 basis points) and a significant datacenter opportunity with a total addressable market exceeding $5 billion.
In other recent news, Generac Holdings has been the subject of various analyst reports reflecting mixed sentiments about its future prospects. UBS maintained its Buy rating and a price target of $220, highlighting Generac’s strong position in both commercial and residential power markets. Stifel also reaffirmed its Buy rating with a $210 price target, following discussions with company executives about potential short-term challenges in the home standby generator market due to below-average outage activity. On the other hand, Jefferies lowered its price target for Generac to $175 from $200, citing weaker-than-expected power outages affecting the home standby generator business, which may impact third-quarter results. Canaccord Genuity also reduced its price target from $250 to $240, attributing the change to a mild hurricane season and reduced outage activity, leading them to lower earnings estimates. Meanwhile, KeyBanc Capital Markets maintained a Sector Weight rating, noting a balanced long-term risk/reward profile despite soft conditions in the residential home standby generator market. These recent developments indicate varying perspectives on Generac’s near-term growth opportunities and market conditions.
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