By Sam Boughedda
Generac Holdings (NYSE:GNRC) was lifted to Buy from Hold, with its price target raised to $175 from $104 at Canaccord on Thursday.
Analysts said in a research note that the "storm clouds are breaking," and the firm sees fundamentals improving in the second half of 2023 as "management works to purge inventory in 1H23."
"The company continues to ramp its dealer network, helping to buoy underlying demand and support our conviction around a 2H23 return to growth," wrote analysts.
Over the longer term, Canaccord expects the company to continue to build its clean energy portfolio both organically and through M&A to leverage its crown jewel dealer network to become a renewables leader.
"A deeper push into charging would particularly help reduce long-term concerns around vehicle-to-home impacts on generator demand," the analysts added.
After an 8% rise on Wednesday, Generac shares are up a further 1% Thursday, adding to its more than 30% rise in 2023.