The pullback for Generac this year has given investors a chance to buy low on a big-picture winner, according to UBS. Analyst Jon Windham named the stock a top pick in the alternative energy sector, saying that Generac has major upside potential thanks to its push into smart home technology. “In our view, concerns over slowing post-pandemic [home standby power] demand are fully reflected in the current share price with upside from the long-term potential of GNRC’s smart home energy product rollout. … We see the current valuation as providing an attractive 4:1 upside/downside opportunity with the current share price offering an attractive entry point into a likely long-term, smart home energy winner,” Windham wrote. The generator company has rolled out new products in recent years that help manage household electricity use with battery and solar power. UBS estimated that Generac’s clean energy revenue will triple between 2022 and 2026. Generac has underperformed the broader market this year, dropping nearly 31%. However, UBS kept its price target at $450 per share, which is more than 84% above where the stock closed on Wednesday. Generac’s main business is still home generators, which could be a concern in a period of slowing economic growth. However, UBS said that generators could be more recession-resistant than other major home appliances. “We expect GNRC’s residential business to be relatively more resilient in an economic downturn given power outages (rather than the overall level of consumer spending) are a key demand driver,” Windham wrote. — CNBC’s Michael Bloom contributed to this report.