Stifel reiterates Generac stock Buy rating on $8B Amazon deal

Stifel has reaffirmed a Buy rating and maintained a $285 price target for Generac Holdings (NYSE:GNRC) following the company's revelation of a substantial supply agreement with Amazon. The agreement involves up to $8 billion worth of backup power generators for Amazon's data centers. This partnership comes amid Amazon's accelerated data center expansion, which has resulted in a 15.77% revenue growth over the past year.

Initial deliveries are anticipated to reach around $2.4 billion between 2027 and 2028, adding roughly $4 billion to the existing backlog. Generac's data center backlog stood at $1.6 billion at the end of Q2 2026, and the new Amazon deal is expected to significantly expand this figure. In connection with the agreement, Stifel noted that Generac issued Amazon with warrants to acquire up to 1,693,745 common shares at an exercise price of $200.9266 per share, with vesting tied to cash payments.

This aligns the interests of both companies and validates Generac's market position. Stifel predicts rising demand from data center customers will lead to additional orders for Generac. According to InvestingPro analysis, Amazon is currently trading below its Fair Value, indicating potential for further expansion. For those seeking deeper insights, comprehensive analysis for both companies, including exclusive ProTips and financial health scores, is available.