Citigroup sees a bright future ahead for shares of emergency power provider Generac Holdings . Analyst Vikram Bagri upgraded the Wisconsin-based energy manufacturer to a buy rating from neutral in a npte released Thursday. Bagri’s share price target of $138 implies that Generac could rise 25% from current levels. Generac has slumped 31% in the past three months, leaving it at a “significant discount” versus historical multiples. GNRC 3M mountain GNRC has slumped in 3 months. “While we are lowering our PT and estimates, GNRC has experience successfully managing through tariffs under Trump 1.0 and through recessionary environments,” Bagri wrote. “The company has demonstrated strong pricing power in the past, which positions it well to defend margins.” Citi’s report said its January 2025 price target on Generac was $162, down from $172 in October. While Generac may need to further increase its pricing, the company’s higher domestic exposure — alongside its blackout and event-driven sales — provides it with this strong pricing power, the analyst said. Citigroup said that during a round of higher tariffs in 2018, Generac Holdings was still able to expand its gross profit margins. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles, and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
