Generac Stock Rises 19% on 'Transformational' Amazon Deal
Generac Holdings (GNRC) stock surged by nearly 19% to $207 on Thursday afternoon, following analysts' praise for its new $8 billion generator supply deal with Amazon (AMZN).
The 'transformational' deal will see Generac supplying backup generators for Amazon's data centers. In the first stage, Amazon is expected to take delivery of about $2.4 billion worth of generators between 2027 and 2028.
Under the deal, Generac issued a warrant allowing Amazon to buy 1.69 million shares at $200.93 per share. However, the remainder is tied to Amazon buying up to $8 billion worth of additional backup generators from Generac.
Roth Capital analyst Chip Moore described the deal as 'transformational' for Generac and noted that it has an increasingly positive reward profile. Despite maintaining his Hold rating, Moore lifted his price target from $214 to $250, implying about 21% upside.