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Bank of America highlighted that billion-dollar weather events now average 23 per year, or nearly twice as many as in the 2010s, and key states like Texas, Florida, and California remain under-penetrated with backup power.
Shares of Generac Holdings Inc (GNRC) soared over 4% on Monday after Bank of America reinstated its coverage on the stock with a ‘Buy’ rating and a $182 price target.
According to TheFly, Bank of America (BofA) noted that Generac, as a "leading manufacturer of backup power" with a 75% market share, is well positioned to benefit from worsening grid reliability and increasingly severe weather disasters.
The brokerage highlighted that billion-dollar weather events now average 23 per year, or nearly twice as many as in the 2010s, and key states like Texas, Florida, and California remain under-penetrated with backup power.
A CNBC report cited the analyst as saying that the number of senior citizens in the U.S. will grow to 82 million by 2030, compared to 58 million in 2022. BofA also noted that the rising population of seniors will need reliable power for medical devices and refrigerated medication.
“While Baby Boomers remain the top buyers of home standby generators, demand is expanding to Gen X and older Millennials, who see backup power as essential for home security, extreme weather resilience, and remote work,” the analyst said, per the report.
The analyst also observed that migration to outage-prone states like Texas and Florida highlights the need for resiliency.
“Generac’s generators run on natural gas or liquid propane, but the company also offers a solar and battery storage system with smart home energy management system. While the residential solar sector is struggling, Generac’s offerings provide “a foundation for future opportunities,” BofA said, according to the report.
On Stocktwits, retail sentiment continued to trend in the ‘extremely bullish’ territory (78/100).
GNRC shares have lost over 12% in 2025 but have gained nearly 16% in the past 12 months.
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