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Investing.com — Generac Holdings, Inc. (NYSE:GNRC) shares are climbing in early Tuesday trading after Goldman Sachs added it to its “Americas Buy List” and upgraded the stock from Neutral to Buy.
GS analyst Jerry Revich wrote that the energy technology company has products in the early phases of the adoption curve, a rising distribution “store count” footprint, and the broadest product portfolio within its top products.
“The growth in its dealer network is the result of the company’s strategy to drive lead generation to partners via a ROI-focused advertising process across emerging and core offerings of the company,” explained Revich.
“We see continued momentum driven by GNRC’s complete consumer product offering across clean energy and standby generators, combined with lead generation algorithm refinement.”
The analyst concluded that while the risk of a cyclical downturn in the home stand-by business had kept them on the sidelines, the stock’s fall from its November highs means Goldman’s “negative estimate revisions are now priced in.”
Generac shares are trading 2% higher Tuesday.
