Generac Holdings (GNRC) shares ripped higher on Sept. 17 after management announced a multi-billion-dollar commercial partnership with Amazon (AMZN). In its press release, GNRC said its pivotal supply agreement with the cloud and e-commerce giant is designed to furnish backup power solutions for its expanding data center footprint.
The AMZN news brings much-needed reprieve to Generac stock that was otherwise down roughly 40% versus its year-to-date high in late June.
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www.barchart.comWhat the Amazon Deal Means for Generac Stock
Generac expects initial deliveries of backup generators to power Amazon Web Services (AWS) data centers to bring in $2.4 billion over the next two years, while the lifetime value of the contract sits at about $8 billion.
Note that Amazon has also received warrants to purchase up to 1.69 million GNRC shares as part of this arrangement.
Investors are bullish because the AMZN deal reinforces Generac Holdings as a major utility-scale partner for hyperscaler AI and cloud infrastructure, accelerating its strategic transformation from a consumer standby generator brand into an enterprise power leader.
Jefferies Reiterates Bullish View on GNRC Shares
The Amazon announcement led Jefferies to reiterate its “Buy” rating on Generac shares on Thursday. Analysts at the firm maintained a bullish $286 price target on the backup power giant, indicating potential upside of nearly 37% from current levels.
According to the analysts, the deal offers multi-year revenue visibility and validates GNRC’s commercial and industrial market expansion strategy.
Jefferies highlighted that rapid growth in AI workloads and mounting electric grid constraints create a long-term structural tailwind for backup generator suppliers like Generac Holdings.
Investors should also note that GNRC soared past its 20-day and 50-day moving averages (MAs) today, indicating the bullish momentum could continue, at least in the near term.
Generac Remains Buy-Rated Among Wall Street Firms
Crucially, other Wall Street analysts also believe the recent decline in GNRC stock has gone a bit too far, making it attractive as a long-term holding.
The consensus rating on Generac sits at “Moderate Buy,” with the mean price objective of about $283 indicating potential for about a 35% rally through the remainder of 2026.
www.barchart.com On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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