Analyst Jeff Osborne of TD Cowen maintained a Buy rating on Generac Holdings, retaining the price target of $220.00.
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Jeff Osborne has given his Buy rating due to a combination of factors that highlight Generac Holdings’ potential for growth despite some current challenges. One of the key reasons is the company’s expanding opportunity in the data center sector, with a significant increase in backlog over the past three months, indicating strong future demand. Additionally, Generac is poised to benefit from its upcoming product cycle in the HSB segment, which is expected to enhance gross margins and maintain its dominant market position.
While there are some negative aspects, such as a weaker power outage environment affecting demand and pressure on residential business margins, Osborne believes these are outweighed by the positives. The company’s strategic initiatives, such as shipping large megawatt diesel generators to Europe and the upcoming HSB product rollout, are seen as growth drivers. Despite the lowered 2025 guidance, the overall outlook remains positive, supporting the Buy rating.
According to TipRanks, Osborne is a 4-star analyst with an average return of 5.4% and a 46.76% success rate. Osborne covers the Technology sector, focusing on stocks such as SolarEdge Technologies, First Solar, and Itron.
In another report released today, Needham also maintained a Buy rating on the stock with a $248.00 price target.