Generac (GNRC) stock slips on analyst downgrade
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Generac (NYSE:GNRC) the stock is down on Friday after the company was downgraded by Bank of America.
This downgrade caused analysts at Bank of America to downgrade the company from a “neutral” rating to an “underperforming” rating. For the record, the consensus rating for GNRC stock is a “hold” based on 26 analyst opinions.
BofA’s downgrade also came with a lowered price target. This caused Bank of America to lower its price target from $141 per share to $91 per share. That’s a potential drop of 18.7% for the stock. For comparison, analysts’ consensus price target is $194.46 per share.
What’s behind GNRC’s bearish stock rating?
Bank of America has a problem with the standby power generation company’s forecast for fiscal year 2023. Specifically, the company believes the company is too optimistic about its forecast.
For context, Generac expects net sales for fiscal 2023 to fall between 6% and 10% year-over-year (YOY). Considering the company is already expecting lower revenue, Bank of America’s position suggests things could get worse for GNRC stock investors.
As of this writing, some 426,000 shares of GNRC have changed hands. That’s down from the company’s average daily trading volume of about 1.3 million shares. Despite everything, the title is down 5.8% on Friday morning.
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As of the date of publication, William White has not held (directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.