Generac Holdings Inc: Reiterate Buy, PT to $335 on C&I Demand
Report Coverage
- Broker
- UBS
- Region
- United States
- Sector
- Information Technology, Real Estate, Electrical Equipment
- Report Type
- Market Report
- Primary Focus
- Data center-driven C&I growth and margin expansion
Report Summary
UBS reiterates Buy on Generac and raises its price target to $335 (from $305), reflecting greater confidence in the durability and visibility of the earnings trajectory driven by accelerating C&I demand from data centers. The data center backlog now exceeds $700mn (up ~$300mn since mid-February), providing visibility into 2027, with an additional ~$600mn non-binding hyperscale opportunity. UBS raises 2026/27/28E adj. EBITDA to $953mn/$1,155mn/$1,379mn.
Key Takeaways
- Price target raised to $335 from $305, reiterating Buy, based on 17x EV/EBITDA applied to cumulative 2Q27-1Q28E adj. EBITDA, reflecting better visibility and growing confidence in forward earnings.
- C&I backlog exceeding $700mn (up ~$300mn since mid-Feb), with an additional ~$600mn non-binding hyperscale opportunity not yet in backlog; visibility extends into 2027.
- C&I revenue estimated to grow from ~$1.7bn (2025) to ~$3.3bn by 2028 at ~25% CAGR, while Residential grows at ~9% CAGR from $2.5bn to ~$3.2bn.
- Adj. EBITDA margin expected to expand from ~17% (2025) to ~21% (2028), driven by operating leverage, vertical integration, and Generac Home synergies.
- 2028 financial framework targets ~50/50 C&I/Residential mix (vs. 41%/59% in 2025), with ~$1bn of global data center revenue assumed in 2028.
Why This Report Matters
Generac's rapidly growing data center backlog and C&I mix shift position it as a key beneficiary of the structural increase in electricity demand driven by AI workloads, with improving earnings visibility, expanding margins, and potential for further positive re-rating.
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Companies Mentioned
Who this summary is for
This summary is for users researching the UBS Generac Holdings Inc report. It helps users review Generac Holdings Inc: Reiterate Buy, PT to $335 on C&I Demand coverage, key takeaways, and related broker or sector research paths across data center power demand, C&I backlog growth, EBITDA margin expansion; Generac Holdings.
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