Published March 24, 2025

05:34 PM EDT

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Key Takeaways

  • Generac shares rose Monday as Bank of America analysts said the company could benefit from growing demand for backup power.
  • The bank restarted coverage of Generac with a “buy” rating and a price target implying over 30% upside.
  • The market for generators is also expanding to include more Gen X and older millennial customers, the analysts said.

Generac (GNRC) shares gained Monday as Bank of America said the home generator maker could see growing demand for backup power amid concerns about severe weather disasters.

Generac stands to “benefit from worsening grid reliability and increasingly severe weather disasters,” the bank said Monday. BofA noted billion-dollar weather events now occur roughly 23 times a year, nearly double the rate seen in the 2010s.

BofA issued a “buy” rating and a price target of $182 for the stock, implying over 30% upside after shares rose 4.7% to close at $137.67 Monday. The consensus price target of analysts tracked by Visible Alpha is $175. 

The market for generators is also expanding to include more Gen X and older millennial customers, “who see backup power as essential for home security, extreme weather resilience and remote work,” Bank of America said. Migration into states that see more power outages, such as Texas and Florida, is also a factor, the analysts noted. 

Last year, shares of Generac had jumped amid worries about the impact of Hurricane Helene in September and Hurricane Milton a month later. The stock has gained about 17% over the past 12 months.

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  1. BofA Securities. “Generac Holdings Inc. Don’t get left in dark – reinstate at Buy, PO $182.”