Analysts upgrade Generac on $8 billion Amazon data‑center contract and $4 billion backlog
KeyBanc and Piper Sandler raised Generac Holdings to Overweight, setting price targets of $280 and $303 respectively. The upgrades were driven by an announced multi‑year agreement to supply Amazon with up to $8 billion of generators, including $2.4 billion in purchases through 2028, and a $4 billion data‑center backlog. Analysts also projected 2028 revenue of $8.12 billion and EBITDA of $1.62 billion from the data‑center business.
Why it matters
The upgrades suggest investors may price in higher growth from Generac’s shift to commercial data‑center power, potentially supporting the stock above its current level (KeyBanc’s target implies a 13.4× 2027 EBITDA multiple). Piper Sandler’s valuation assumes a 9.3× 2028 EV/EBITDA multiple, indicating upside if the company meets its revenue and capacity goals.
Key facts
- 1Generac announced a multi‑year agreement with Amazon worth up to $8 billion over seven years. tradingview.com
- 2The Amazon agreement includes $2.4 billion in purchases through 2028. tradingview.com
- 3KeyBanc upgraded Generac to Overweight with a $280 price target. marketscreener.com
- 4Piper Sandler initiated coverage with an Overweight rating and a $303 price target. marketscreener.com
- 5Generac has built a $4 billion data‑center backlog in less than a year. businessupturn.com
- 6Piper Sandler projects 2028 revenue of $8.12 billion and EBITDA of $1.62 billion. businessupturn.com
Summary written by AlphAI from 8 of 8 sources. Not investment advice. Figures are as stated by the linked sources.