According to Jefferies, the increasing use of bi-directional charging in electric vehicles poses a risk to Generac’s business. Analyst Sari Boroditsky downgraded the generator maker, saying the rise of this alternative technology threatens to limit the long-term penetration of Generac’s home standby generators. Boroditsky also raised the target price of the bank from 95 USD to 85 USD per share. to the dollar, and the stock fell 2 percent before the bell. “We believe EV bi-directional charging is a game-changing technology that will disrupt the backup energy space and limit HSB penetration in the long term,” Boroditsky wrote. “This is on top of negative earnings revisions for 2023/24 as consensus estimates remain too high.” Bidirectional chargers, which allow electric cars to supply electricity to homes when the power goes out, are becoming increasingly popular in the auto industry, and General Motors announced in October the creation of a new business unit focused on these and other energy-intensive devices. Ford announced a partnership with PG&E earlier this year to evaluate the bidirectional charging capabilities of the electric F-150. “Bi-directional charging is expected to become a standard feature as more vehicles continue to receive OEMS notification,” Boroditsky wrote. “Our analysis suggests that by 2037, there will be enough battery power to power an entire single-family home in the United States for one day.” Generac has invested more than $1 billion in the space since 2019, but faces strong competition from larger rivals, they said. Shares of Generac have fallen 71% this year amid a tough sell-off and housing market. The new price target suggests the stock could be down 17% from Monday’s close. “In the near term, strong demand and a weakened housing market over the past three years will weigh on sales in 2023,” Boroditsky wrote. — CNBC’s Michael Blum contributed reporting