Generac Stock Fires Up Amid Amazon Deal Frenzy
Generac Corp.'s (GNRC) stock has surged nearly 11% this week, on track for its best week since May. The company's recent Amazon supply agreement is being hailed as a potential catalyst for growth in Generac's data center business.
According to Wells Fargo, the deal could push Generac's annual data center revenue past $3 billion by 2028. The firm estimates that Amazon could award up to $8 billion under the generator supply agreement, which would give Generac close to half of Amazon's diesel-generator deployments.
Roth Capital has raised its price target on GNRC stock to $250 from $214, while keeping a Neutral rating. Wells Fargo maintains an 'Overweight' rating and a $280 price target, citing that the current valuation multiple is 'far too low' after the agreement.