Jefferies upgrades Generac on data center contract potential

Jefferies upgraded Generac (GNRC) to Buy from Hold with a price target of $302, up from $239. The stock in premarket trading is up 1% to $249.93. The company has “multiple shots on goal” for data center contract conversion, the analyst tells investors in a research note. The firm sees a positive risk/reward for Generac shares with two potential data center announcements this year. Baudouin engines are finding their way into hyperscaler configurations, pointing to market acceptance for a product only Generac “can ably scale,” contends Jefferies. It upped Generac’s estimates and notes companies with data center updates have positive share reactions.