Generac Stock Surges on Amazon Deal Worth Up to $8 Billion
Generac Holdings Inc. (GNRC) has seen its stock price soar by 20.8% after signing a long-term supply agreement with Amazon to provide backup power generators for Amazon's data centers.
The initial deliveries of these generators are expected to total around $2.4B in 2027-2028, with potential payments up to $8B tied to warrant vesting. Generac granted Amazon a warrant to purchase up to about 1.69M GNRC shares at an exercise price of $200.93.
The market reaction was strong, with Generac's stock surging between 35% and 42% after the news. Analysts remain bullish on the company, with Cantor Fitzgerald reiterating its Overweight rating and a $333 price target. Wells Fargo also stayed constructive, with a $280 target and a view that Generac is likely largely exempt from a new Trump Executive Order on foreign-sourced grid gear.