GNRC Stock Heads For Best Week Since May: Amazon Deal Sparks Fresh Data Center Growth Bets, Analysts Say Generac Is Trading Cheap

Analysts are pointing to Amazon’s deal as a potential catalyst for Generac’s expanding data center business.

• Wells Fargo sees Generac’s Amazon supply deal driving its data center revenue above $3 billion by 2028. 
• The firm says Generac’s valuation looks low and maintains a $280 price target. 
• Roth Capital raised Generac’s price target to $250 from $214 while keeping a Neutral rating. 

Generac Corp. (GNRC) is on track for its strongest week since May as analysts highlight the stock’s valuation following its major Amazon supply agreement. Wells Fargo says the deal could help Generac’s data center revenue exceed $3 billion by 2028. 

Generac stock edged 0.04% higher in Friday’s premarket. The stock has gained nearly 11% so far this week. 

Wells Fargo Sees Generac Shares As Undervalued 

According to Wells Fargo, Amazon could award as much as $8 billion under the generator supply agreement. The firm estimates the deal could give Generac close to half of Amazon’s diesel-generator deployments and help push annual data center revenue past $3 billion by 2028.

Wells Fargo also said Generac’s valuation does not yet fully reflect the potential benefit from the Amazon relationship. The firm maintains an ‘Overweight’ rating and a $280 price target on the shares, describing the current valuation multiple as “far too low” after the agreement. The price target implies a 35% upside to the stock’s last closing price. 

JPMorgan highlighted the contract’s ability to provide greater visibility into future sales. Generac ended the second quarter with a $1.6 billion data center backlog, and the firm estimates that spreading potential Amazon deliveries across fiscal 2027 and 2028 would give the company about $1.9 billion in fiscal 2027 data center revenue visibility.

JPMorgan’s estimate does not include additional data center contracts Generac could secure during that period. 

Roth Capital Raises Generac’s Price Target

Roth Capital raised its price target on Generac to $250 from $214. The firm retained a ‘Neutral’ rating while incorporating an initial estimate for possible commercial and industrial data center deployments into its model.

Despite keeping its Neutral stance, Roth said the risk/reward profile is “increasingly positive” after what it called a “transformational” supply and warrant agreement with Amazon.

GNRC Stock: Retail Stance 

On Stocktwits, retail sentiment around the stock remained in ‘extremely bullish’ territory. 

A user said, “In addition to the actual revenues and profits,  the Amazon deal validates Generac’s data center offerings and improves revenue visibilty and stability.  The deal also underscores Generac’s enlarged total addressable market (TAM) opportunity.  I would think those fundamental improvements to Generac’s business justifies multiple expansion that should be sustainable long term.”

Another user said, “Backup power as a service for the world.”

GNRC stock has surged over 51% year-to-date. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.<