We also took on a heavily promoted Generac (NYSE: GNRC), which touts itself as a leader in home backup generators but has been pivoting to acquisitions in the clean energy space. We argued this pivot reflected challenges in its core business, and pointed to a strained channel partner where many U.S. customers alleged Generac had misrepresented the products’ benefits.(2) The channel partner ultimately filed a lawsuit against Generac claiming defective products, and despite UBS claiming Generac was its top pick with more than 80% upside in June, we argued that 40–50% downside was more likely. Our estimates proved too conservative as the stock has declined by approximately -60%. (3)(4)
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