Happy Friday afternoon to everyone on The Street. US markets were closed today for Good Friday. But we really enjoy putting together your Wall Street Cheat Sheet every day — so we’re still here, having a good Friday, too.

OVERHEARD ON THE STREET

CNBC: The White House announced fees up to $1.5M on Chinese-built ships docking at US ports.

WSJ: President Trump appointed Deputy Treasury Secretary Michael Faulkender to lead the IRS, making him the fifth commissioner this year.

Reuters: President Trump is actively considering firing Fed Chair Jerome Powell, according to adviser Kevin Hassett.

AP: A federal judge paused the Trump administration’s plan to lay off nearly 1,500 employees at the CFPB.

Fortune: Tesla $TSLA ( ▼ 0.08% ) faces a class-action lawsuit accusing it of deliberately inflating odometer readings to shorten warranty coverage.

TOMORROW’S TRADE IDEA, TODAY

Powering Through the Tariff Turmoil

Undervalued, Upgraded

Citigroup $C ( ▲ 1.85% ) has upgraded Generac Holdings $GNRC ( ▲ 0.97% ) to a Buy rating, and analyst Vikram Bagri has set a new price target of $138, representing a roughly 23.5% upside. 

The stock has dropped more than 33% in the last 6 months, and Bagri believes it is now undervalued, especially considering the generator manufacturer’s historic ability to stand strong during economic downturns.

Pricing Power Is Key

We covered Generac earlier this year, when Bank of America $BAC ( ▲ 0.21% ) predicted the stock could benefit from the aging US population. But that was before the present tariff landscape took shape.

And while Generac hasn’t been immune to those macro headwinds in the short term, the development has made another major bank bullish on the firm over the long run.

In particular, Bagri pointed to Generac’s pricing power as a key advantage, arguing it will allow the company to protect its margins in difficult economic environments. 

The analyst also highlighted the fact that the company effectively navigated Trump’s tariffs during his first term. It has a proven track record of maintaining profitability while under pressure, Bagri maintained, either from tariffs or recession-like conditions.

Low Power Mode

Citi also emphasized the company’s strong domestic market presence and the nature of its sales, which tend to spike during blackouts and other events causing power outages. 

Although its new price target is lower than before, the bank still sees a lot of upside potential for Generac’s stock, especially at a time when the broader market’s outlook is uncertain.

However, whether in tariffs, recessions, or bull markets, analysts say Generac has proven it can outperform, and may well do so again.

ON OUR RADAR

AP: A sharp and unusual sell-off in the US dollar has raised concerns that investors may be losing confidence in the country.

CNBC: The Fed approved Capital One’s $COF ( ▲ 1.69% )  $35B all-stock acquisition of Discover Financial Services $DFS ( ▲ 2.12% ) .

Reuters: Tesla settled a racial discrimination lawsuit filed by a Black female employee who alleged pervasive harassment.

CNN: The ECB cut its main interest rate again in response to Trump tariffs, the seventh rate cut in the past year.

The Verge: Jeff Bezos' Blue Origin space tourism flight, featuring Katy Perry, went over like an asteroid on social media. Here’s where it went wrong.

THURSDAY’S POLL RESULTS

Are you bullish or bearish on German stocks over the next 12 months?

🟩🟩🟩🟩🟩🟩 🐂 Bullish

🟨🟨🟨⬜⬜⬜ 🐻 Bearish

And, in response, you said:

• 🐂 Bullish —

  • “German efficiency and educated populace. We have invested in German defense now that US has withdrawn from NATO and his fucking tariffs. We are done with American investment for now until this moron is done.”

  • “I'm American, concerned about Trump's abandonment of Ukraine and European and American democracy. I sold my American stock and applied the $'s to EU, Nordic military stocks. Averaging about 15% on my investments thus far. We have an existential threat to our way of life and I am on the side of our survival.”

  • “Growth will come from somewhere, and Germany seems well positioned (if it maintains political stability)”

• 🐻 Bearish —

  • “Chinese vehicles will sell more and more instead.”