Generac soars after $2.4 billion data center power deal with Amazon
BUZZ-Generac soars after $2.4 billion data center power deal with Amazon ** Shares of power equipment maker Generac GNRC.N soar 34.5% to $235.50 premarket
** Co inks long-term deal to supply backup generators for Amazon's AMZN.O data centers
** Initial deliveries expected to total about $2.4 bln in 2027 and 2028; total estimated at up to $8 bln
** GNRC issues warrant to AMZN to acquire up to 1.69 mln GNRC shares through 2033 at $200.93 apiece, totaling about 3% of GNRC's outstanding shares
** GNRC had first announced a deal in early June, without disclosing contract terms, cost and name of the hyperscaler
** Citigroup says investors expected $800 mln in revenue in 2027 from GNRC's second hyperscaler customer; AMZN deal is "substantially larger than expected"
** This deal, alongside about $1.35 bln of previously disclosed hyperscaler and colocation backlog for 2027, implies data center revenue potential of about $2.5 bln next year, above our estimates - Citi
** Sixteen analysts covering stock rate it "buy" or higher, six "hold", median PT at $285 - data compiled by LSEG
** Stock up about 28% YTD, as of last close
(Reporting by Purvi Agarwal in Bengaluru)