Cantor Fitzgerald initiated coverage on Generac Holdings Inc. (NYSE: GNRC) with an overweight rating. The investment firm set a price target of $325 per share. This target represents a potential upside of more than 50% from the previous closing price.
Analysts expect Generac to transition from a weather-dependent manufacturer to a comprehensive power-resiliency platform. The company’s high-margin residential business remains a core driver of profitability. Its commercial and industrial segment is positioned to benefit from the current data-center construction cycle.
Recurring revenue from the ecobee acquisition and grid services offerings contribute to the evolving business mix. Generac is scheduled to release its second-quarter earnings on July 29.