Generac pulls back after Hurricane Milton-induced rally

Universal Insurance Holdings

10/10/2024 15:33

** Shares of Generac Holdings  GNRC.N  fall as much as 4.5%
to $164.51 early Thurs, pulling back from a recent rally induced
by Hurricane Milton
    ** GNRC has pared some losses, and last down 2.2% at $168.51
    ** Milton marched across Florida, knocking out power to more
than 3 mln homes and businesses, just weeks after Hurricane
Helene hit the state
    ** Through Weds, GNRC shares had gained roughly 20% over the
past three weeks, and then surged to a 2-yr high last week as
Milton strengthened to category 4 hurricane
    ** GNRC tends to rise during major storms as investors bet
on increased demand for its backup generators
    ** Meanwhile, Florida-focused insurers recover as losses
from Milton are tallied
    ** Including Thurs move, GNRC up ~30.5% YTD vs S&P 500
Industrials sector's  .SPLRCI  19% advance
    ** Avg rating among 25 analysts is "buy" and median PT of
$161.50 up from $144.50 on Jul 10, per LSEG data

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))