Citi cuts Generac target, opens ‘negative catalyst watch’

Citi lowered the firm’s price target on Generac (GNRC) to $162 from $172 and keeps a Neutral rating on the shares. The firm also added a “90-day negative catalyst watch” on the shares. Citi believes Generac’s 2025 revenue guidance will likely disappoint. The company faces a $200M headwind to Residential revenues in 2025 as it laps a record 2024 hurricane season, the analyst tells investors in a research note. Notably, the annual guidance provided by the company has historically not assumed a major outage event such as a Category 3+ landed hurricane or major winter storm, “indicating potential for disappointment,” contends Citi.