Wells Fargo upgrades Generac Holdings to 'overweight'

Shares of power equipment maker Generac Holdings GNRC.N rise 1.57% to $139.14

Wells Fargo upgrades GNRC to "overweight" from "equal weight"; raised PT to $195 from $186, a 42.3% upside to the stock's last close

Brokerage cites stronger‑than‑expected demand for diesel generators as AI‑driven data‑center buildout continues

Wells Fargo says the market is undervaluing Generac's data‑center business at only about $4/share, even though analysts say it could be worth ~$61/share if the company captures 10% of the estimated $12 billion total addressable market for data center diesel gensets

GNRC is nearing a major hyperscaler contract, with Amazon trialing its diesel gensets and Google running a large request for proposal, creating potential multi‑hundred‑million dollar deals, brokerage says

Recent slide in GNRC's shares creates an attractive entry point and is well‑positioned against Caterpillar CAT.N, with lower‑cost gensets and industry supply constraints likely helping it gain share, brokerage says

15 of 23 analysts rate the stock "buy" or "strong buy", 8 "hold"; median PT is $207 - data compiled by LSEG

As of last close, GNRC was down 11.6% YTD