William Blair analyst Brian Drab has maintained their bullish stance on GNRC stock, giving a Buy rating yesterday.
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Brian Drab has given his Buy rating due to a combination of factors that highlight Generac Holdings’ potential for growth. The company experienced a mixed third quarter, with a decline in residential sales attributed to fewer power outages and tough comparisons with the previous year’s storm season. However, the commercial and industrial segment showed a promising 9% increase in revenue, driven by strong performance in the telecom and industrial distribution channels.
A significant factor in Drab’s positive outlook is Generac’s expanding opportunity in the data center industry, which appears to be transformative for the company. The data center backlog has notably doubled to $300 million since the second-quarter report, with expectations for most of this backlog to be fulfilled by 2026. This growth potential in the data center sector underpins the Buy rating, as it suggests a promising trajectory for Generac’s future performance.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $220.00 price target.