Why are Generac shares rising?

Generac shares are up 3% this morning following positive coverage from Janney.

Generac shares rose 2.6% to $93.55 as Janney Montgomery rated the stock a “buy” with a price target of $160, a premium of about 76% to last night’s close.

That may be a bold prediction, but it may be justified. On the other hand, the average price target on Wall Street for Generac stock is $140.67, so experts may see a buying opportunity here.

It seems a promising future for the company, with 13 of the 21 analysts calling Generac a “strong buy” today. Also, the 12-month consensus price target of $149.14 is already a 63.6% premium to current levels.

It is also important to note that Schaeffer’s Volatility Scorecard (SVS) stock is rated at 94 out of 100, which means Generac tends to beat volatility estimates, a good thing for buyers.  

The Wisconsin-based company, founded in 1959, supplies energy storage and generation equipment. As well as supporting the green energy movement, only some financial traders see Generac as their investment in alternative fuels.

What’s next for Generac shares?

According to a Northland analyst, demand for home standby power (HSB) generators will drive earnings at Generac in 2023. 

In his production, it could nearly double Generac shares to a target price of $180 by the end of next year.

Also, an analyst of Janney Montgomery is equally bullish. Forecasting Generac stock at $160 per share, he recommends buying it despite what he believes may be the “early stages of a downturn” in HSB demand, the opposite of what Northland predicts. According to Fool.com

Janney analyst Sean Milligan says Generac is an “established brand” with “~80% market share in the residential backup generator (‘HSB’) market.” 

Investors may look at a near monopoly in a niche clean energy industry with Generac stock.

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