Investors should scoop up shares of Generac as power demand from artificial intelligence increases, according to Wells Fargo. Analyst Praneeth Satish upgraded the power generator maker to overweight from equal weight. His price target of $195, up from $186, signals a gain of 42.3% from Thursday’s close. Generac has been under pressure of late, dropping nearly 28% since the company posted weaker-than-expected third-quarter results on Oct. 29. Satish also pointed out that worries around AI have hurt the stock. GNRC mountain 2025-10-29 GNRC since Oct. 29 However, Satish thinks this decline created an attractive entry point for investors, especially as the artificial intelligence buildout continues. “We believe GNRC’s current stock price doesn’t fully reflect potential upside tied to diesel generator sales for data center backup power,” Satish wrote in a note to clients. “GNRC appears close to landing an anchor hyperscaler customer & doubling manufacturing capacity to $1B/yr. Our checks suggest GNRC is trialing diesel gensets with AMZN, potentially leading to an order worth hundreds of millions. GOOGL also has a large RFP out, likely a similar multi-hundred-million opportunity across suppliers,” he added. Neither Google nor Amazon responded to CNBC’s request for comment. Analysts are somewhat split Generac. Of the 23 who cover the stock, 13 rate it a buy or strong buy, while the remaining nine have a hold rating, according to LSEG. Year to date, the stock is down 11.6%. However, shares climbed more than 3% in the premarket following the upgrade.
