Stephen Gengaro, an analyst from Stifel Nicolaus, maintained the Buy rating on Generac Holdings. The associated price target remains the same with $210.00.
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Stephen Gengaro has given his Buy rating due to a combination of factors that highlight both challenges and opportunities for Generac Holdings. Despite weaker-than-expected power outage activity impacting the company’s third-quarter results and leading to a reduction in 2025 guidance, there are positive indicators for future growth. The company’s data center backlog has doubled to $300 million over the past three months, suggesting potential for continued expansion in this segment.
Additionally, Generac’s energy technology solutions have exceeded expectations, driven by strong shipments of energy storage systems, particularly in Puerto Rico. The increase in dealer count further supports a higher baseline level of demand for home standby generators. While 2025 revenue is expected to remain flat year-over-year due to reduced outage activity, the company’s strategic initiatives and growth in commercial and industrial segments, especially in data centers, are promising. These factors, combined with a maintained target price of $210, underpin Gengaro’s Buy recommendation.
GNRC’s price has also changed dramatically for the past six months – from $113.240 to $180.860, which is a 59.71% increase.