Bank of America Securities analyst Dimple Gosai reiterated a Buy rating on Generac Holdings yesterday and set a price target of $236.00.
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Dimple Gosai has given his Buy rating due to a combination of factors that highlight Generac Holdings’ potential for growth and strategic positioning in the market. Despite a short-term setback in the third quarter, primarily due to anticipated residential sector weakness, the company’s long-term outlook remains strong. This optimism is driven by the accelerating momentum in Generac’s data center segment, where backlog has significantly increased and management plans to double production capacity by 2027, reflecting confidence in sustained demand.
Dimple Gosai also notes that Generac’s strategic initiatives in the data center space, including partnerships with global colocation customers and a robust pipeline with hyperscalers, position the company well for future growth. The company’s efforts to expand capacity and invest in new facilities are expected to enhance its ability to meet increasing demand. Additionally, while residential performance was soft, the introduction of new models and inventory adjustments are anticipated to support recovery. Overall, the combination of these factors underpins the Buy rating, with a price objective set at $236.
According to TipRanks, Gosai is an analyst with an average return of -36.5% and a 53.19% success rate. Gosai covers the Technology sector, focusing on stocks such as First Solar, Array Technologies, and NEXTracker, Inc. Class A.