Generac risk/reward favorable ahead of Q4 results, says KeyBanc KeyBanc believes that Generac's risk/reward ratio ahead of its Q4 results is favorable, as the stock has underperformed, while sentiment towards the name has deteriorated. The firm believes that the company's residential standby business has been resilient, but it reiterates a Hold rating on the shares based on valuation.
Generac downgraded to Underperform from Neutral at BofA/Merrill BofA/Merrill downgraded Generac to Underperform and lowered its price target to $33 from $43. The firm reduced estimates following its latest dealer survey and said it sees margin pressure continuing into 2H 2015 given high inventories and headwinds from rental customers. Additionally, BofA/Merrill expects Generac's push into global Commercial & Industrial to drive multiple compression.