Citi cuts Generac Holdings price target to $232 from $300

Citi analyst Vikram Bagri lowered the price target on Generac Holdings (NYSE: GNRC) to $232 from $300 while maintaining a Neutral rating on the stock.

The adjustment came ahead of the company's third-quarter earnings report. Bagri outlined several areas of focus, including data center revenue potential in fiscal year 2027, where Citi models $2.4 billion against the company's prior outlook of $1.5 billion to $2.0 billion.

The analyst also cited the pace of residential growth in the second half of the year, the margin impact of hyperscaler orders, and capacity expansion beyond the current $3.75 billion framework. Bagri noted that further capacity expansion is contingent on securing a third hyperscaler customer.

Additional focus areas include supply readiness, with supplier Weichai currently running ahead of Generac's requirements, pricing stability through 2028, and freight cost pressures already embedded in guidance, with tariff recoveries helping to offset margin impacts.

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