Jefferies’ senior analyst Tanner James believes Generac (GNRC) shares will push further up from current levels as the year unfolds.
In his latest research note, James upgraded the manufacturer of backup power generators to “Buy” and raised his price target to $302, indicating potential upside of another 12% from here.
Generac stock has already been a blockbuster investment in 2026 — currently up a remarkable 90% versus the start of this year.
Why Is Jefferies Bullish on Generac Stock?
Jefferies’ core thesis hinges on Generac’s prime position to secure massive commercial data center contracts tied directly to the artificial intelligence (AI) boom.
Hyperscalers are expanding data infrastructure at a breakneck pace, and these facilities need huge, completely fail-proof backup power systems to keep up with the unyielding energy consumption of modern AI workloads.
Generac’s management recently said the company is on the “one-yard line” regarding its first major hyperscaler contract, and Jefferies believes a definitive announcement is imminent.
Given this AI-tailwind, GNRC shares offer an “asymmetric positive risk-reward profile” at current levels, analyst Tanner James argued in a recent note to clients.
GNRC Shares Are Attractively Priced
A major catalyst driving this upgrade is the traction in Generac’s specialized Baudouin heavy-duty engines, which are increasingly finding their way into hyperscaler configurations.
This indicates institutional acceptance for a complex, heavy-duty offering that GNRC is positioned to scale far more efficiently than its competitors.
At about 3.47x sales, Generac shares offer explosive industrial upside, the Jefferies analyst added.
Note that GRNC has a history of closing both June and July with high-single-digit gains, a seasonal pattern that makes it even more exciting to own in the near-term.
How Wall Street Recommends Playing Generac
Other Wall Street analysts also remain positive on Generac, especially since it sits well above its key moving averages (MAs), with an RSI that’s comfortably below overbought levels.
According to Barchart, the consensus rating on GNRC stock is set at “Moderate Buy,” with price targets going as high as $325, signaling potential for another 20% upside over the next 12 months.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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