Generac: Amazon Gives The Story More Credibility

Summary Generac is evolving into a power solutions provider, with data centers now driving its growth thesis. The Amazon agreement, with $2.4B in expected generator deliveries for 2027-2028, provides significant C&I revenue visibility and brand credibility. I now model 30% revenue growth for 2027 and 25% for 2028, supporting a $300 price target (40-45% upside). Francisco Zalez/iStock via Getty Images Investment Thesis Generac ( GNRC ) is changing from a company tied to residential power outages into a power solutions provider, and the latest Amazon agreement makes that transition much more tangible. Data centers are becoming the This article was written by Fernanda Galvez Jalil 1.25K Followers Follow My name is María Fernanda and I'm currently studying an MBA. My inspiration investors are Warren Buffett, Peter Lynch and Terry Smith, so I look for quality companies at a reasonable valuation. I believe that, in the long term, fundamentals are what drive the share price, so I look to predict what a business's earnings per share will do. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in GNRC over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.