Update shared on20 Sep 2025
Fair value Increased 1.13%Generac Holdings’ consensus price target has inched higher to $206.81 as analysts cite strong execution, momentum in data center and energy storage segments, and improving margins from reduced solar exposure, though some caution that valuation now appears full following the recent rally.
Analyst Commentary
- Bullish analysts cite strong execution entering the second half of 2025, narrowed guidance, and early momentum in the data center segment as positives.
- Growth in residential products, particularly energy storage shipments (notably to Puerto Rico), and a dominant position in the home standby power market are highlighted as key strengths.
- Potential contraction in the residential solar market is viewed as positive, with management aiming to reduce EBITDA drag from these products and improve overall margins.
- Long-term, the company's core standby outlook remains robust but is highly dependent on outage frequency, with secular drivers supporting category leadership in backup power solutions.
- Bearish analysts note that valuation concerns have surfaced after the recent rally, indicating that much of the near-term good news is already priced into the stock.
What's in the News
- Generac launched the PWRmicro 820W microinverter, offering higher power output, streamlined commissioning, easy installation, improved reliability, robust communications, and full integration with PWRcell 2, home standby generators, and the ecobee app.
- The company narrowed its 2025 net sales growth guidance to 2%-5% year over year, citing improved visibility and lower expected pricing increases due to reduced tariff assumptions.
- Completed repurchase of 2,155,557 shares (3.6% of outstanding) for $300.89 million under its buyback program.
- Generac was removed from multiple Russell growth indices, including the Russell 1000, 2500, 3000, 3000E, and Midcap Growth benchmarks.
Valuation Changes
Summary of Valuation Changes for Generac Holdings
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $204.50 to $206.81.
- The Future P/E for Generac Holdings has risen slightly from 25.00x to 25.55x.
- The Discount Rate for Generac Holdings remained effectively unchanged, moving only marginally from 9.01% to 9.13%.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.