Update shared on27 Aug 2025
Fair value Increased 2.54%Generac Holdings' price target has been raised to $204.50, reflecting analyst confidence in strong execution, new product cycles, improving margins, and data center market momentum, though some note that positive expectations are now largely reflected in the share price.
Analyst Commentary
- Bullish analysts highlighted solid execution, narrowed guidance, and early momentum in the data center end market.
- Key product cycle launches, particularly PWRcell2 and PowerMicro, along with strength in residential products—especially storage shipments to Puerto Rico—are fueling optimism.
- Generac’s dominant market share in home standby power and attractive valuation continue to support higher targets.
- Management’s steps to reduce EBITDA drag from residential solar and a potential contraction in this segment are seen as positives amid improving margins and a Clean Energy strategic review.
- Some bearish analysts express caution due to elevated valuation following recent share price appreciation, noting most positives are now largely priced in and the outlook remains dependent on outage events.
What's in the News
- Full-year 2025 net sales growth guidance narrowed to 2%-5%, from prior range of 0%-7%, reflecting Q2 outperformance and lower price increases due to reduced tariff expectations.
- Completed $300.89 million share repurchase program, buying back 2,155,557 shares (3.6% of shares outstanding), including 392,521 shares for $50.46 million in Q2 2025.
- Dropped from multiple Russell growth indexes, including Russell 1000 Growth, Russell 3000 Growth, Russell 2500 Growth, Russell Midcap Growth, Russell 3000E Growth, effective late June 2025.
Valuation Changes
Summary of Valuation Changes for Generac Holdings
- The Consensus Analyst Price Target has risen slightly from $199.44 to $204.50.
- The Future P/E for Generac Holdings has risen slightly from 24.37x to 24.99x.
- The Consensus Revenue Growth forecasts for Generac Holdings has risen slightly from 7.3% per annum to 7.4% per annum.
Disclaimer
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