Jeffries said Generac’s stock price should rise because of the data center boom and the need for backup generators. Analyst Tanner James upgraded the power generation company from hold to buy on Friday. He also raised his price target to $302 from $239, suggesting an upside of nearly 22% from Thursday’s closing price. “Given the continued strong environment for data center development and potential signs of activity by hyperscalers, we see an asymmetric positive risk/reward setup,” James said in a note to clients. GNRC YTD Mountain Generac YTD YTD Negotiations are underway with multiple hyperscalers for large-scale backup generator supply contracts, and there could be two announcements from Generac this year, he said. “The Baudouin Engine has found its way into hyperscalar configurations, demonstrating the market acceptance of products that only GNRC can scale well,” he said. Generac stock rose more than 3% following the upgrade. Analysts generally have a bullish view on stock prices. According to LSEG data, 13 of the 21 companies it covers have a buy or strong buy rating. Indeed, Jefferies’ price target is above the average price of $267.02. Generac stock is up nearly 82% since the beginning of the year.
