Generac Wins Amazon Deal, Boosting Data Center Prospects

Barclays reaffirmed its Equalweight rating and $278 price target for Generac Holdings (GNRC) after the company announced a long-term strategic supply agreement with Amazon. The deal is valued at $2.4 billion for backup generators, which will be delivered over 2027-2028.

The agreement positions Amazon as Generac's second hyperscaler customer, following its data center business. Generac has seen strong demand in the sector and benefited from a substantial tariff refund in its recent earnings report.

Analysts at Barclays pointed out that GNRC appears undervalued at current levels, with the stock trading below its Fair Value. The company's market capitalization stands at $10.33 billion, with a P/E ratio of 39.97.