Stock Price & Analysis

Based on the oversold condition and positive analyst sentiment, GNRC stock presents a buying opportunity. However, exercise caution due to market risks and high valuation.

Based on current analysis, Generac Holdings Inc. (GNRC) is expected to reach a price target of $165 by the end of 2025. This prediction is supported by the company's strong Q4 earnings, where adjusted EPS of $2.80 exceeded expectations, and the consensus "Moderate Buy" rating from analysts with an average price target of $174.59. The stock's current oversold condition, with an RSI of 26.6, further supports the potential for a rebound.

The S1 support level for GNRC Stock is $127.55 ,The R1 resistant level for GNRC Stock is $135.85.

As of the end of day on 2025-03-17, the price of GNRC Stock was $132.1.

The target price for GNRC Stock according to analyst rating is 174.06, with the highest price target at 205.00 and the lowest at 124.00. Analysts have a Moderate Buy rating on GNRC Stock overall.

The market cap of GNRC is $7.8B.

Analysis and Insights

Valuation Metrics:

Generac Holdings Inc. (GNRC) currently trades at a price of $132.36 with key valuation metrics as follows:

• PE Ratio: 34.0
• EV/EBITDA: 14.3
• PS Ratio: 1.93

These metrics suggest that GNRC is trading at a premium relative to its earnings and revenue, indicating potential overvaluation compared to industry peers.

Technical Analysis:

The stock recently entered oversold territory with an RSI of 26.6, suggesting potential exhaustion of selling pressure. However, the current RSI of 37.32 indicates the stock is still under selling pressure despite the recent bounce.

Analyst Sentiment:

Analysts have mixed opinions on GNRC. While some firms like UBS have raised their price targets to $205, others like Wells Fargo have lowered their targets to $165. The average price target of $174.59 suggests 18.9% upside potential, but the mixed ratings (ranging from Strong Buy to Hold) reflect uncertainty about the stock's future performance.

Recent Performance and Guidance:

GNRC reported strong Q4 results with an adjusted EPS of $2.80, beating expectations. However, the company's 2025 guidance was mixed, with sales growth and net income margin below consensus estimates. This has led to some analyst downgrades and contributed to the stock's underperformance relative to the S&P 500.

Conclusion:

Based on the high valuation metrics, mixed analyst sentiment, and recent underperformance, GNRC appears overvalued at current levels. While the stock has shown resilience with strong Q4 results, the premium valuation and mixed guidance suggest caution for investors.

Generac Holdings Inc. is an energy technology solutions company. The Company provides backup and prime power generation products for residential and commercial and industrial applications, solar plus battery storage systems, energy monitoring and management devices and services, and engine and battery-powered tools and equipment. It operates through two segments: Domestic and International. The Domestic segment includes the legacy Generac business and the acquisitions that are based in the United States and Canada. The International segment includes acquisitions not based in the United States and Canada. Both segments design and manufacture a range of energy technology solutions and other power products. Its product offerings consist primarily of power generation equipment, energy storage systems, energy management devices and solutions, and other power products geared for varying end customer uses. Its residential automatic standby generators range in output from 7.5kW to 150kW.

Generac Holdings (GNRC) is expected to reach a stock price of $180 to $200 by 2030, driven by its strong position in the clean energy and power generation market. The company's growing revenue and profitability, along with increasing demand for renewable energy solutions, support this bullish outlook. Analysts project sustained growth due to GNRC's innovation and market expansion.

GNRC has a total of 8315 employees.