Generac Ratings Shift with Analysts Eyeing Future Growth

Generac's stock outlook sees mixed sentiment from analysts as EPS, revenue growth, and ROE are analyzed. With a projected 12-month price increase, investors are urged to monitor developments.

Date: 09-01-2025

AI Rating: 6

Analyzing Ratings and Growth Potential: Recent evaluations from 12 analysts regarding Generac Hldgs reveal a mix of bullish to bearish sentiments. Most notably, only one analyst rated the stock positively in the last month, indicating a cautious outlook.

The average 12-month price target has risen to $186.92, showcasing an improvement and reflecting a positive shift from the previous target of $167.91, which signifies a 11.32% increase. However, the current target remains below some of the updated ratings by key analysts.

Revenue Growth: A significant highlight in the company's financial metrics is the reported revenue growth of 9.61% as of September 30, 2024. While this growth indicates a positive trend in top-line earnings, it is noted that this growth rate lags behind industry peers, which may dampen investor confidence.

Net Margin: Generac's net margin stands impressively at 9.69%, surpassing industry averages and showcasing effective cost management. This level of profitability reflects strong operational efficiency and could positively influence stock prices as it indicates financial health.

Return on Equity (ROE): The company enjoys a particularly strong ROE of 4.76%, exceeding industry benchmarks. A high ROE suggests that Generac is utilizing its equity capital very effectively, which is attractive to potential investors as a sign of solid financial strength.

In conclusion, while the revenue growth is promising, it is overshadowed by its performance relative to industry peers. The strong net margin and noteworthy ROE add to its appeal. Investors should consider these mixed signals from analysts, especially as Generac maneuvers through this evolving landscape.

Stocks: GNRC