Generac’s stock surged nearly 7% after Jefferies upgraded the company to a Buy rating and increased its price target from $239 to $302, signaling roughly 22% potential upside. The bullish view reflects confidence in Generac’s growth prospects beyond its core residential business.

Analysts highlighted a nonbinding $600 million notice-to-proceed tied to potential contracts with major hyperscalers for AI data-center backup generators. Evidence of Baudouin engines in permitting documents for the Stargate project in Abilene, Texas suggests mounting acceptance of Generac’s technology among large-scale operators.

Jefferies projects Generac will secure two hyperscaler agreements over the next three years, lifting 2028 revenue to $6.8 billion and adjusted EBITDA to $1.5 billion, outpacing current guidance and consensus estimates. The firm also downplayed risks from consumer demand, viewing home standby generators as essential infrastructure.