Roth/MKM Starts Tecogen (TGEN) at Buy

Roth/MKM analyst Chip Moore initiates coverage on Tecogen (OTC: TGEN) with a Buy rating and a price target of $15.00.

The analyst comments: "We initiate at Buy with a $15 PT. We find TGEN poised to benefit from a compelling opportunity in the data center cooling market, which we believe will drive revenue growth of 50% and 74% in FY26 and FY27, respectively. TGEN has decades of experience in cogeneration technology. Cogeneration refers to the simultaneous production of two useful outputs, such as electricity and heat or cooling, from a single fuel source (to simplify, a generator that makes free hot water or boiler/chiller that makes free electricity). We see inflection to positive adjusted EBITDA later next year.

Tecogen entered into a global strategic partnership with the leader in data center thermal management effective 3/1/25. Here, Vertiv (VRT–Buy, Clare) will be marketing TGEN’s engine-driven chillers as part of its worldwide offering for data centers. Management estimates that a single small-to-medium-sized AI data center site (~50MWs) could generate product sales in the $13M+ range. The Vertiv sales and marketing agreement has an initial term of two years and serves as the basis for negotiations on a definitive supply arrangement."

For an analyst ratings summary and ratings history on Tecogen click here. For more ratings news on Tecogen click here.

Shares of Tecogen closed at $3.10 yesterday.

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