According to TheFly, Canaccord sees the Amazon agreement as a multi-year data center opportunity for Generac with $2.4 billion of initial deliveries expected through 2028.
- Canaccord lifted its target to $375 from $275 and kept a Buy rating, per TheFly.
- Cantor said this deal is Generac’s most important data-center disclosure since its first hyperscaler win.
- Initial deliveries under the supply agreement are expected to total $2.4 billion over the next 2 years.
Generac Holdings Inc (GNRC) stock surged in premarket trading Thursday as investors digested its new long-term supply agreement with Amazon (AMZN) for backup generators at data centers, while Canaccord raised its price target on the power-equipment maker by $100, according to TheFly.
Canaccord raised its target to $375 from $275 and maintained a Buy rating, calling the multi-year agreement “landmark.” The firm said it could unlock up to $8 billion in total potential order volume, with roughly $2.4 billion of initial deliveries expected across 2027 and 2028, per TheFly.
GNRC stock was up about 34% in Thursday’s premarket, and was among the trending tickers on Stocktwits at the time of this writing.
Canaccord Sees A Multi-Year Data Center Opportunity For GNRC
Canaccord’s note focused on the scale of the potential business beyond the initial delivery period. The firm expects around $2.4 billion of deliveries across 2027 and 2028, while viewing the broader agreement as capable of supporting as much as $8 billion in potential orders over time, according to The Fly.
That $8 billion figure should not be read as a committed order. Generac’s regulatory filing says warrant shares issued to Amazon vest in stages based on cumulative payments for backup generators, with thresholds extending up to $8 billion. Initial deliveries under the supply agreement are expected to total $2.4 billion in 2027 and 2028.
Cantor Says Amazon Deal Addresses 2028 Backlog Debate
Cantor Fitzgerald also remained constructive, keeping an ‘Overweight’ rating and $333 price target on Generac stock. According to The Fly, the firm called the Amazon agreement Generac’s most important data-center disclosure since its first hyperscaler win and said it directly addresses the 2028 backlog-replenishment debate that had become central to the stock’s investment story.
Amazon Agreement Adds To Existing Hyperscaler Business
Generac disclosed on Sept. 16 that it entered into a long-term supply agreement with Amazon.com Inc. (AMZN) for backup generators used at Amazon data centers.
The company expects initial deliveries worth $2.4 billion across 2027 and 2028. The agreement adds to Generac’s existing push into large-scale data-center power.
Retail Sentiment Around GNRC Stock
On Stocktwits, retail sentiment surrounding GNRC stock improved to ‘extremely bullish’ from ‘bearish’ amid ‘extremely high’ message volume.
So far this year, GNRC stock has risen more than 24%, while AMZN shares have gained over 8% during the same period.
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