Generac: Strengthening Long-Term Growth via Data Center Power Demand and 2028 Upside Potential

Sean Milligan, an analyst from Needham, reiterated the Buy rating on Generac Holdings. The associated price target was raised to $277.00.

Sean Milligan has given his Buy rating due to a combination of factors related to Generac’s strengthened long‑term growth profile and expanding opportunities in commercial and industrial power, particularly for data centers. Management laid out 2028 targets that call for materially higher revenue and EBITDA, and the company highlighted a sizable and growing data center backlog, including a major hyperscale customer commitment that could meaningfully lift 2027 revenue beyond current expectations.

Milligan also notes that the primary uncertainty is the timing of large hyperscaler deployments rather than the underlying demand, which he views as robust and durable. He believes Generac’s core competencies, operating leverage, and vertical integration initiatives should support attractive margin expansion, and since his existing forecasts sit near the lower end of management’s 2028 guidance ranges, he sees room for upside, supporting his Buy rating and $277 price target.

According to TipRanks, Milligan is an analyst with an average return of -2.8% and a 50.00% success rate. Milligan covers the Technology sector, focusing on stocks such as First Solar, Itron, and Shoals Technologies Group.