Update shared on 30 Oct 2025
Fair value Increased 2.80%Analysts have raised their price target for Generac Holdings by approximately $5.71 to $209.59. This reflects optimism about margin recovery, capacity expansion, and an improved long-term revenue growth outlook.
Analyst Commentary
Recent Street research on Generac Holdings reveals a mix of optimism and caution among analysts regarding the company's valuation, growth prospects, and operating environment.
Bullish Takeaways
- Bullish analysts have raised their price targets, citing confidence in the company's setup into 2026 to 2028. This period is expected to offer a clear path toward margin recovery and capacity expansion.
- Analysts see significant upside in the commercial and industrial segment. There are indications that this part of the business could double by 2029.
- Updates to financial models and favorable peer comparables have contributed to more constructive long-term growth outlooks.
- Some analysts highlight Generac's diversified end markets and U.S.-based manufacturing exposure as valuable for long-term cash flow visibility.
Bearish Takeaways
- Bearish analysts are cautious due to recent weak home standby generator demand. This segment makes up a substantial portion of revenue and is heavily influenced by storm and outage activity, both of which have been low recently.
- There are concerns that near-term revenue and margins could miss guidance and consensus estimates, particularly as a result of a weak storm season impacting Q3 results.
- Some believe that the recent sharp increase in share price has already priced in most of the positives, and the current valuation may limit further upside.
- Model adjustments have resulted in the lowering of some price targets, reflecting potential headwinds in market demand and short-term execution risks.
What's in the News
- Generac Holdings has lowered its full-year 2025 net sales growth guidance to approximately flat compared to the prior year, which is a change from the previous forecasted increase of 2% to 5% (Key Developments).
- The company unveiled the PWRmicro, an installer-friendly 820-watt microinverter designed for high-powered solar panels. It is built for seamless integration with next-generation home energy solutions, including the PWRcell 2 and home standby generators (Key Developments).
- Key benefits of the PWRmicro include higher energy yield, faster commissioning with Generac Field Pro, simplified installation, enhanced reliability, and improved system communications and updates (Key Developments).
- Starting in the fourth quarter, Generac will enable unified monitoring and management of its Clean Energy products and ecobee devices through the ecobee app and supported thermostats (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has risen slightly, increasing from $203.88 to $209.59.
- Discount Rate has increased modestly, moving from 9.31% to 9.50%.
- Revenue Growth expectations have climbed, rising from 7.27% to 9.37%.
- Net Profit Margin forecast has improved, up from 10.70% to 11.42%.
- Future P/E has fallen moderately, decreasing from 25.58x to 23.71x.
Disclaimer
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