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Investing.com - Canaccord raised its price target on Generac Holdings shares to $300 from $275 while maintaining a Buy rating on the stock. The stock currently trades at $195.33, up 36% year-to-date despite an 11% decline over the past week.
The firm now values Generac (NYSE:GNRC) at approximately 23 times its 2028 non-GAAP earnings per share estimate, up from 22 times previously.
Canaccord increased its 2028 earnings per share estimate for the company to $13.09 from $12.48. The median 2028 earnings per share multiple in Generac’s peer group currently stands at approximately 23 times.
The firm updated its financial model to reflect anticipated performance through the end of the decade.
Canaccord stated it views its data center estimates as reasonable but acknowledged potential upside to those projections.
In other recent news, Generac Holdings has been the focus of several analyst updates following its Investor Day presentation. Stifel reiterated its Buy rating with a $235 price target, emphasizing the company’s strong growth outlook driven by rising electricity demand and significant global infrastructure investment. Barclays raised its price target for Generac to $228, maintaining an Equalweight rating, and noted a nonbinding notice for potential sales worth $600 million, which partially alleviated market disappointment over the absence of a hyperscaler contract. Needham also reiterated a Buy rating, highlighting Generac’s 2028 revenue targets of $6.2 billion to $6.6 billion and an EBITDA range of $1.25 billion to $1.45 billion, supported by growth in commercial, industrial, and data center segments. Canaccord Genuity maintained its Buy rating with a $275 price target, noting that the company’s financial outlook aligned with or exceeded expectations. Despite these positive updates, Generac’s shares recently fell as the company did not announce a long-term agreement with a hyperscaler, leading to investor disappointment. However, the company’s data center backlog remains robust at approximately $700 million. These developments reflect ongoing interest in Generac’s strategic growth initiatives and market positioning.
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